Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



NEXT Increases EPS and Dividend More Than 15% for Fourth Consecutive Year

LONDON -- NEXT's (LSE: NXT  ) Directory service -- its online and catalog area, which is widely believed to have ensured that it "survived and thrived" where some high-street rivals died -- saw a 9.5% increase in sales to bring in 1.19 billion pounds for the year ending January 2013, helping the retailer to a positive set of results.

NEXT's retail sales remained consistent, raking in 2.19 billion pounds to match the previous year, though profit here improved 2.3% year on year to take home 331.1 million pounds. NEXT Directory saw profit up 15.1% at 302.1 million pounds, compared with 262.6 million pounds for the year ended January 2012.

Chairman John Barton commented:

The growth differential between NEXT Directory and NEXT Retail, where sales were level, narrowed. The two businesses continue to work well together and support each other in many ways. For example, over 20% of Directory sales are delivered through our stores and over 60% of the returns come back that way. Both businesses increased their operating margins during the year and the Group's underlying profit before tax rose by 9% to 622 million pounds.

Overall, underlying earnings per share rose 16.6% to 297.7 pence, while NEXT's full-year dividend grew 16.7% to 105 pence to yield around 2.5% at today's price. The shares put on 2.3% by midday on the news to reach 4,244 pence; their price has now almost quadrupled over the last five years since 2009's low of 1,088 pence, and it has risen more than 100% over the last two years.

Looking to the future, the retailer plans a fivefold strategy: to develop the NEXT brand; to "rigorously" control costs; to invest in profitable new space; to invest in online growth; and to generate cash and return it to shareholders. All of this adds up to one of the high-street's finest retailers. Whether you think the shares will rise further enough to warrant new investment, however, is up to you.

If you're looking for companies that have strong potential to soar in price, then we've pinpointed our favorite growth share from the FTSE 100. Our analysts have produced a free report in which they evaluate its finances, risks, and growth prospects going forward. Simply click here to get your copy delivered to your inbox immediately -- it's completely free.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2324843, ~/Articles/ArticleHandler.aspx, 10/1/2016 6:45:53 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 21 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 12:07 PM
NXT $4750.64 Down -50.36 -1.05%
Next CAPS Rating: No stars