Next admits blunders as profits tumble

The boss of High Street bell-wether Next on Friday admitted that a series of blunders — including not having enough stock — coupled with a challenging market had dented profits.

Lord Wolfson told the Standard: “[The sector] is undergoing a profound change and no one knows how it will pan out.”

The retailer made pre-tax profits of £726.1 million for the year to January, down 8.1% from £790.2 million the previous year. Sales were also down 0.5% to £4.1 billion.

The City was unfazed, however, as shares rose almost 3%. “This was a difficult year for Next but despite the challenging conditions and collapse in retail profits there are bright spots, notably the continued strong performance of online,” said Neil Wilson of ETX.

Although Wolfson flagged a difficult year ahead he expects sales to grow, albeit only by 1%. He will focus more on beefing up the online business and “trailing a lot of things in stores” to attract shoppers.

Separately, restaurant chain Prezzo today was likely to go ahead with a company voluntary arrangement as creditors voted on the closure of 94 of its sites and a reduction in rents.