Next profits rise as it braces for £1bn coronavirus hit

Next Oxford Street 2018 2

Next has posted an increase in full-year profits but warned that the coronavirus pandemic will spark a “significant downturn in sales”.

The fashion giant, which registered a 0.8% uptick in pre-tax profit to £728.5m in the year to January 2020, has modelled a number of coronavirus scenarios – including one that would see full-price sales plummet £1bn in its current financial year.

Next boss Lord Wolfson admitted there was “no way of predicting the extent that the effect coronavirus will have” on the business.

But the retailer has conducted a coronavirus stress test, based on three scenarios that would see sales drop £445m, £820m and £1bn respectively – amounts that equate to 10%, 20% and 25% of annual turnover.

Subscription content

Please sign in now if you have a subscription or are already registered with us.

Retail Week

Register for free to continue reading provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.

Register today for a taste of our high-quality intelligence and enjoy:

  • Two free article views per calendar month on
  • Detailed analysis of current trends and events 
  • Exclusive newsletters
  • In-depth reports, videos, interviews and much more

Discover Retail Week register now

Please note, if you have recently purchased a subscription, it may take a few moments before your account is updated.