NEXT is a UK based retailer offering exciting, beautifully designed, excellent quality

fashion and accessories for men, women and children together with a full range of

homewares# NEXT distributes through three main channels:


■NEXT Retail, a chain of more than 500 stores in the UK and Eire;
■NEXT Directory, a home shopping catalogue and website with around 3 million active customers and international websites serving approximately 50 countries; and
■NEXT International, with almost 200 mainly franchised stores around the world#
Other businesses in the NEXT group include:■NEXT Sourcing, which designs, sources and buys NEXT branded products;
■Lipsy, which designs and sells its own branded younger women's fashion products through retail, internet and wholesale channels; and
The parent company, NEXT plc, is listed on the London Stock Exchange #LSE: NXT#L# and is a member of the FTSE 100 Index# Total revenues for the year ended January 2012 were £3#5 billion with underlying pre-tax profits of £570 million# NEXT's head office is located in Enderby on the outskirts of Leicester, England

http://www.next.co.uk/

Director Declaration

RNS


RNS Number : 5704C

Next PLC

17 April 2013






Next plc

The Company has been notified that John Barton, Chairman of Next plc, has also been appointed as non-executive Chairman of easyJet plc with effect from 1 May 2013.



Mr A J R McKinlay

Company Secretary

Next plc

Good man - boss of Next gives his bonus to staff £2.4m as a thank you for the stores success through the recession.

NEXT Plc: 10 Years Of Market-Thrashing Returns
Fool.co.uk By Maynard Paton | Fool.co.uk – 4 hours ago..

Today I'm going to share with you a few lessons from one of the very best investing records of the last ten years.

I'll also point you towards an opportunity from Motley Fool Share Advisor that I've been told could outperform even this surprise master 'investor'!

Ten years of market-thrashing returns

Take a look at the following table. It shows a series of share purchases since 2004:

Year to January Price paid
2004 £9.61
2005 £14.44
2006 £14.49
2007 £16.61
2008 £19.74
2009 £13.74
2010 £20.36
2011 £20.50
2012 £23.21
2013 £32.13

The share in question currently trades at £43. Now I don't know about you, but I'd be chuffed with that sort of investment performance.

In fact, I calculate the compound returns from those purchases range from 13% up to 37% a year – which naturally knock the comparable performance of the FTSE 100 (FTSE: ^FTSE - news) into a cocked hat.

Sadly, it wasn't me who achieved those gains. Nor was it another ordinary investor. And it wasn't a City fund manager, either. In fact, it wasn't an individual at all. Those returns were actually achieved by a company -- Next .

A £2 billion buyback belter

You see, those share purchases reflect the share buybacks the fashion chain has made during the last ten years or so. My sums tell me the company spent more than £2 billion on share buybacks during the last decade, buying 126 million shares at an average price of nearly £18.

With the share price now £43, I think it's fair to say that £2 billion has since more than doubled in value. A 44% reduction to the share count has helped Next's dividend triple during the last ten years, too.

Lessons we can all learn from this surprise master 'investor'

After studying Next and its master buyback achievements, I drew a few conclusions for us Foolish investors:

1: No need to always look for new ideas

Next didn't waste its cash buying lots of different and unfamiliar companies to reward shareholders. Instead, it focused on investing in the business it knew best – its own.

That philosophy can work for us as well, as often you don't need to keep finding fresh opportunities to achieve superb returns. Sometimes, the best buying opportunities for new money may be familiar names already in your portfolio.

2: Develop some investing rules

Next followed a simple set of rules to ensure its buybacks were effective. In particular, its rules included using only surplus cash flow – and not taking on extra debt – to repurchase shares.

By developing a set of sensible guidelines, we too should become more efficient with our stock-picking. We could start by taking a lead from Next's rulebook, and track down companies generating surplus cash and not taking on extra debt.

3: Buy growth at a reasonable price

Even with quality shares, we should always take care not to overpay for future growth. Importantly, Next did not buy back its shares at any old price.

I reckon the company paid anywhere between 9 and 12 times near-term earnings, which seems very good value when you consider earnings per share have tripled since 2004.

Should you buy Next?

True, the multi-dip recession, the rise of online shopping and high rent levels have crippled many retailers of late. Yet Next has prospered and provided wonderful returns to those who spotted the group's progress and could look beyond the sector gloom.

So the question now I guess is… should you buy Next?

Well, I asked Nate Weisshaar, a senior analyst at Motley Fool Share Advisor, for his view... and he told me the shares presently trade at 13 times forecast earnings – and above the 9 to 12 range Next itself has found to produce handsome rewards for buyers.

So perhaps this share is one to put on your watch list, at least for the moment.

An opportunity that could outperform Next

Nate did disclose, however, that he preferred an alternative opportunity in the retail sector.

In fact, Nate claimed this particular alternative offered greater growth prospects, with its recent sales advancing 9% compared to just 3% at Next. He also told me the firm enjoyed a cash-rich balance sheet and that he rated its management very highly.

But could this alternative really outperform Next?

Well, Nate and his team at Motley Fool Share Advisor have just put their reputations on the line by recommending this alternative as one of their 'Best Buys' for April.

In the meantime, I've told Nate to keep an eye on Next and its buybacks -- as I'm sure this share could one day also offer an irresistible buying opportunity!

Share price surge makes Next third-biggest retailer in the UK

By Neil Craven, Financial Mail On Sunday

PUBLISHED: 22:44, 20 April 2013 | UPDATED: 22:44, 20 April 2013

A surge in the share price of fashion retailer Next has made it Britain’s third-biggest retailer.


Chief executive Lord Wolfson has defied the gloom with booming profits from the Next Directory catalogue and website.


Last week Wolfson handed his £2.4million bonus to 19,400 of his longest-serving staff – equal to one per cent of their salary on average.



Up: Next's shares have jumped by 43 per cent in the past year


It was seen as a unique gesture for a boss under no pressure to relinquish his bonus.


This weekend, Next’s stock market value was £6.9billion, behind Sainsbury’s £7.1billion – another good performance – and Tesco’s £29billion.

A year ago Next was the sixth-biggest behind Tesco, Morrisons, B&Q owner Kingfisher, Burberry and Marks & Spencer.


Next’s shares have risen 43 per cent in the past year.

Should I Invest In Next Plc?
Fool.co.ukBy Kevin Godbold | Fool.co.uk – 5 hours ago


.FINANCIAL TIMES FTSE ACTUARIES SHARE INDICES FTSE 100

To me, capital growth and dividend income are equally important. Together, they provide the total return from any share investment and, as you might expect, my aim is to invest in companies that can beat the total return delivered by the wider market.

To put that aim into perspective, the FTSE 100 (FTSE: ^FTSE - news) has provided investors with a total return of around 3% per annum since January 2008.

Quality and value

If my investments are to outperform, I need to back companies that score well on several quality indicators and buy at prices that offer decent value.

So this series aims to identify appealing FTSE 100 investment opportunities and today I'm looking at Next , the UK-based fashion and accessories retailer.

With the shares at 4,340p, Next's market cap. is £6,961 million.

This table summarises the firm's recent financial record:
Year to January 2009 2010 2011 2012 2013

Revenue (£m) 3,272 3,407 3,298 3,441 3,563
Net cash from operations (£m) 449 572 452 526 659
Adjusted earnings per share 156p 188.5p 221.9p 255.4p 297.7p
Dividend per share 55p 66p 78p 90p 105p

Strong recent full-year results continue to support the wisdom of Next's focus on design and quality. Many covet the clothing brand, and from what I've seen, cash-strapped households often prioritise such posh-clothing purchases over mundane items, such as utility bills, for example! That's great for Next investors. It means that the firm has captured a big chunk of the mass market.

Next's two-pronged attack saw around 51% of underlying profit come from its 6.7 million square feet of trading space and some 46% from its complementary directory business last year, with the rest of its profit from other sources. But it's nearly all derived from the UK. Despite also operating in around 60 international territories the firm gained just around 1% of Next-brand profits overseas. To me, that means there is still great potential for expansion and total investor returns from here.

Next's total-return potential

Let's examine five indicators to help judge the quality of the company's total-return potential:

1. Dividend cover: adjusted earnings covered last year's dividend around 2.8 times. 4/5

2. Borrowings: net debt is around 75% the level of last year's operating profit. 4/5

3. Growth: revenue, earnings and cash flow have all been growing. 5/5

4. Price to earnings: a forward 12.5 looks up with growth and yield forecasts. 3/5

5. Outlook: good recent trading and qualified optimism in the outlook statement. 5/5

Overall, I score Next 21 out of 25, which encourages me to believe the firm has potential to out-pace the wider market's total return, going forward.

Foolish Summary

Next scores well on my quality indicators and presents today at a fair price compared to growth and yield expectations. That encourages me to believe that, yes, I should invest in Next at some point.

> Kevin does not own shares in Next.

As of Apr 20, 2013, the consensus forecast amongst 25 polled investment analysts covering NEXT plc advises investors to hold their position in the company. This has been the consensus forecast since the sentiment of investment analysts deteriorated on Aug 09, 2012. The previous consensus forecast advised that NEXT plc would outperform the market.

Wednesday preview: Next releases first quarter results
Tue 30 Apr 2013

Wednesday preview: Next releases first quarter results LONDON (SHARECAST) - UK retailer Next is set to reveal its first quarter results Wednesday – a month after posting annual profit growth.

A slump in homewear sales is expected to drag on the company’s performance, according to analysts at Credit Suisse on April 5th.

The broker said although Next has started to prioritise its home division in advertising, the market requires a boost to housing transactions and secured credit before realising any material improvement in the category.

"While leading indicators are still positive there hasn’t yet been sufficient signs of a pick up in housing activity in the spring for this to be the driver we originally expected this year," the analyst said.

Last month the company reported a 9.0% jump in pre-tax profits to £621.6m for the year to January 2013 boosted by growth in online sales and business expansion.

Credit Suisse noted a fall in brand sales in the results and said the past two months would "clearly have been slow".

"It is therefore very hard to see how Next’s first quarter IMS […] is likely to give too much reason for cheer, despite the soft comps," it said.

Next PLC (NXT:LSE) set a new 52-week high during today's trading session when it reached 4,441. Over this period, the share price is up 49.09%.

Trading statement Wed 8 May

In the Mail newspaper today - Simon Wolfson's fashion retailer Next put on 36p to 4425p in anticipation of a bullish first quarter sales report for the 14 weeks to May 4
on Wednesday. Next said at the end of March that brand sales growth was running at the bottom of its 1-4% target range for 2014 given the cold weather. Sales should have improved in recent weeks because of the warmer weather.

Share price forecast




The 20 analysts offering 12 month price targets for NEXT plc have a median target of 4,300, with a high estimate of 5,070 and a low estimate of 3,760. The median estimate represents a -2.82% decrease from the last price of 4,425

Wednesday preview: Next and Sainsbury report
Tue 07 May 2013

Wednesday preview: Next and Sainsbury report LONDON (SHARECAST) - Next is expected to report retail sales growth when it unveils its first quarter results Wednesday, according to Panmure Research.

The broker recommended a ‘buy’ rating, saying the UK retailer’s online offering has put it in a prime position for growth.

"Our ‘buy’ rating is based on our long term view that Next will be a winner in the online race, given its historic and on-going investment in home shopping, which has put it miles ahead of the competition in multichannel retail," the analyst said.

Panmure forecasts first quarter retail sales growth of between 1.5% to 2.0% and directory sales to rise 7.0%.

However, it anticipates flat full-year revenues in retail and an 8.0% jump in directory.

Credit Suisse last month said a slump in homewear sales is likely to drag on the company’s performance.

While Next has started to prioritise its home division in advertising, the analyst believes the market requires a boost to housing transactions and secured credit before realising any material improvement in the category.

"While leading indicators are still positive there hasn’t yet been sufficient signs of a pick up in housing activity in the spring for this to be the driver we originally expected this year," Credit Suisse said.

Interim Management Statement

Sales Performance to 4 May 2013

NEXT Brand sales excluding VAT for the first fourteen weeks of our financial year were up 2.2%, of which 1.5% came from the opening of profitable new space. NEXT Retail sales were down -1.9% whilst NEXT Directory was up +8.9%. Brand sales were therefore a little below the midpoint of the guidance range we gave in March of +1% to +4%.

The chart below sets out the Brand sales variance by week compared with last year, this shows that trading has been volatile and particularly poor through March and early April. The marked upturn in sales in mid-April corresponds to the break in the very cold weather.

Sales variance graph: Click or paste the following link into your web browser to view the PDF document. http://www.rns-pdf.londonstockexchange.com/rns/1802E_-2013-5-7.pdf

It is apparent that the poor March figures were down to an abnormally cold spring, equally the good weeks since mid April have been boosted by pent up demand from the previous month. We believe that neither period is indicative of any significant change in the underlying economy.

The overall number of +2.2% is the best guide for future performance and we remain cautious about the consumer environment. We anticipate that the continuing decline in real earnings will depress discretionary spending for at least the next eighteen months, if not longer.

Guidance for the Full Year to January 2014

We remain confident in our sales guidance range for the full year of +1% to +4% and profit range of £615m to £665m. The table below sets out the guidance we gave in March. Profit and EPS growth estimates are calculated on last year's underlying profit before tax of £622m and basic EPS of 297.7p, which exclude reported post tax exceptional profits of £35m.

Sector leader new highs, bode well for everyone

NEXT shares have soared by more than 50% over the past 12 months, helped by a 119p (2.7%) boost to 4,525p this morning after the high-street fashion chain released a cheery update. For the first 14 weeks of the year, NEXT Brand sales were up 2.2%, with 1.5% of that from new outlets. Although NEXT Retail sales dropped 1.9%, possibly due to very cold March weather, NEXT Directory sales gained a very nice 8.9%.

For the full year, the firm expects to see pre-tax profit of £615-665 million, with a growth in basic EPS of 4-13%. A £250 million share buyback is also expected.

Next made strong gains - despite posting an overall fall in first quarter retail sales - after its home shopping catalogue and website division Directory rose 8.9% during the three month period. Brand sales excluding VAT were up 2.2% of which 1.5% came from the opening of new space.

09 May 07:56 Next PLC Beaufort Securities Upgrades
Next: Deutsche Bank 4600p to 4850p and maintains its buy recommendation

Thu 09 May 2013

Thursday tips round-up: Next, Genus, StanChart LONDON (SHARECAST) - Retailer Next is facing a "new normal," something which its Chief Executive, Lord Wolfson of Aspley Guise, describes as an environment where the shopper is careful with his or her money and retailers can no longer expect an automatic year-on-year rise in like-for-like sales. So much so in fact that analysts believe that a sales rise across the group of 2.2 per cent in the 14 weeks to last weekend masks an underlying fall of about 4.4 per cent. Nevertheless, the company continues to generate more than sufficient cash to continue with its current share buy-back policy. Those buybacks, and the prospect of special dividends, then, provide a strong support, and Next looks like one of the few retailers worth having in the present environment, The Times´s Tempus writes.

Next PLC (NXT:LSE) set a new 52-week high during today's trading session when it reached 4,696.5. Over this period, the share price is up 61.81%.