NEXT Plc Reports Profit Growth and Positive Earnings Outlook

NEXT Plc shows promising results in its first half report, with profit before tax rising 4% and strong earnings per share growth. The company has raised its fiscal 2025 profit and sales estimates, indicating robust performance ahead.

Date: 19-09-2024

AI Rating: 8

NEXT Plc (NXGPF, NXT.L) has reported a 4% increase in profit before tax, rising to 432 million pounds from 416 million pounds the previous year. This growth suggests that the company is maintaining profitability amid shifting market conditions.

The pre-tax earnings per share (EPS) increased by 8.1%, reaching 375.3 pence compared to 347.2 pence previously, while post-tax EPS also grew, standing at 282.8 pence versus 266.2 pence last year. This solid EPS performance reflects effective cost management and sales strategies.

With a headline NEXT Group profit before tax of 452 million pounds, the company is seeing robust revenue growth of 13.6%, as total statutory sales hit 2.86 billion pounds, up from 2.52 billion pounds. This growth is a strong indicator of increasing consumer demand and market share.

Additionally, the board has declared an interim dividend of 75 pence per share, suggesting confidence in ongoing profitability and commitment to shareholder returns.

Looking forward, NEXT has raised its fiscal 2025 profit before tax outlook to 995 million pounds, reflecting an expected growth of 8.4%, up from prior estimates of 980 million pounds. This adjustment signals positive momentum for the company in the upcoming fiscal period.

The expected total Group sales target has also been increased to 6.23 billion pounds, originally forecasted at 6 billion pounds, highlighting anticipated market expansion.

These results indicate a favorable economic environment for NEXT Plc, promising potential benefits for investors concerned with earnings stability and growth.

Stocks: NXGPF NXT.L