Subsequent has grow to be solely the fourth UK retailer in historical past to publish annual pre-tax income exceeding £1 billion, becoming a member of the ranks of Tesco, Marks & Spencer, and Kingfisher.
The FTSE 100-listed trend and homewares large reported a revenue of £1.01 billion for the 12 months to 25 January — up 10.1 per cent on the earlier 12 months — and raised its steerage for the 12 months forward.
Shares in Subsequent jumped as a lot as 9.55 per cent in early buying and selling on Thursday to £109.40 after the group elevated its revenue forecast by £20 million to £1.066 billion, citing stronger-than-expected full-price gross sales at first of the monetary 12 months. Full-price gross sales within the first eight weeks of the 12 months had been up 5 per cent, prompting the group to revise its full-year gross sales forecast from 3.5 per cent development to five per cent.
Nonetheless, Subsequent cautioned that it was not rising forecasts for the second half of the 12 months, pointing to more durable comparisons and issues concerning the affect of upcoming tax rises. The corporate expects April’s deliberate increases to Nationwide Insurance coverage contributions and the minimal wage to weaken the UK jobs market and dent client confidence later within the 12 months.
Subsequent’s robust efficiency has been buoyed by a 5.8 per cent rise in full-price gross sales and profitable acquisitions of premium manufacturers together with Reiss and FatFace. Whole group gross sales rose 8.2 per cent to £6.3 billion — barely forward of analyst expectations.
Chief govt Lord Wolfson of Aspley Guise, who has led the enterprise since 2001, remained upbeat regardless of warning indicators within the wider economic system. “We are as positive about the company today as we were this time last year,” he instructed buyers, “albeit in an environment where the risks to the wider UK economy are growing.”
Wolfson — the FTSE 100’s longest-serving chief govt — has been extensively credited with steering the enterprise by a interval of fast transformation, navigating challenges from the price of residing disaster, rising inflation, and the shift to e-commerce that has claimed many excessive road casualties.
This marks the ninth time in two years that Subsequent has raised its revenue forecast, reinforcing Wolfson’s repute as a frontrunner who under-promises and over-delivers. However even with file income, the corporate shouldn’t be resistant to mounting price pressures. In January, Subsequent confirmed it might increase costs by 1 per cent this 12 months to assist offset a projected £67 million rise in wage prices by January 2026, pushed by the federal government’s tax and wage coverage modifications.
Internationally, the retailer expects abroad gross sales development to ease from 24 per cent to round 20 per cent, because it scales again advertising and marketing spend in markets corresponding to Saudi Arabia, Australia and the US.
Subsequent, which operates 458 UK shops, has continued to outperform in a difficult retail panorama. Whereas rival JD Sports activities was as soon as thought of neck-and-neck within the race to hit the £1 billion revenue milestone, it pulled again its forecasts in January after weaker-than-expected Christmas buying and selling.
With shares up almost 20 per cent over the previous 12 months and early buying and selling reflecting investor confidence, Subsequent stays a standout success story on the excessive road — however with rising stress on prices, taxes and client demand, the retailer is aware of the trail forward could also be much less clean.
