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    Next Sales Grew Faster Than Expected In The Holiday Season

    2014/12/31 15:52:00 23

    NextHoliday SeasonSales

    Next PLC (NXT.L), the second largest clothing retailer in the UK, announced yesterday that the full price sales increased by 2.9% year-on-year during the holiday season from October 28th to December 24th, which was closer to the group.

    Expect

    The upper limit of -2% to 4% is much higher than the average value of 11 analysts expected by Bloomberg composite 1.1%.

    Among them, the Next retail network with more than 700 stores worldwide has recorded a 0.5% increase in revenue, while online and directory business Next Directory revenue has increased by 7.7% annually.

    Act as

    Britain

    A small number of retailers who did not participate in the "black Friday" promotion began to reduce their prices on the 26 day of boxing day. The group pointed out that due to this reason, the inventory of Next PLC (NXT.L) was significantly overloaded.

      

    Next

    PLC (NXT.L) opened 1.84% higher on Tuesday, then went all the way, with a maximum increase of 4.14%.

    Next PLC (NXT.L) issued a profit warning in September because of the continued warm weather this autumn.

    The group now raised the median expected profit before the three quarter of the year to 795 million pounds to 770 million pounds, slightly raised to 775 million pounds, and the pre tax profit margin narrowed to 7.65-7.85 billion, which is expected to grow 11.5% over the previous year.

    The current fiscal year 2015 ends on January 24, 2015.

    Next PLC (NXT.L) said, "the consumption outlook in the UK is relatively good". However, due to the high base in the first half of this year, the group remains cautious in the next year's budget. It is estimated that the full price sales and pre tax profits in fiscal 2016 will achieve 2.5%-7.5% growth.

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    The US apparel retail giant GAP announced that the company has already worked with Zalando, Europe's largest clothing accessories supplier, to sell its clothing brands such as GAP and Old navy from May next year, hoping to expand its expansion in Europe with the help of e-commerce.

    As early as 2007, GAP tested online sales, and online sales account for more than 10% of total sales.

    These "new" drivers are the decline of performance.

    In the third quarter, Gap brand sales in the same store showed a 5% decline, while Old Navy recorded only 1% growth, while Banana Republic sales remained flat, but they had been stagnant for 7 consecutive quarters.

    In fact, the weakness of GAP began to appear ten years ago. In 2004, its sales volume was $15 billion 900 million, and by 2012 its sales volume was only $15 billion 700 million.

    While H&M, Zara and other fast fashion brands are competing for their target customers and market share in the US market, Gap's dominance in the industry has been greatly affected.

    The group's predecessor, CEO Gleen Murphy, implemented a radical reform in order to revitalize its business, but the effect was not obvious.

    Murphy announced its resignation in October.

    Before the group's new CEO Art Peck was mainly responsible for e-commerce, he saw the explosive force of online channels, so the emerging market as a breakthrough point.

    In October this year, the number of GAP brand shops that had entered China for four years reached 100, and 10 new outlets will be opened by the end of this year.

    After landing in Shanghai in March of this year, Old Navy recently extended its tentacles to Shenzhen, Guangzhou and Beijing.

    However, compared with H&M and ZARA, the total number of GAP brands in China is still at the bottom.


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