British retailer Next says quarterly sales plunge 41%, Retail News, ET Retail

LONDON : British apparel retailer Following explained on Wednesday overall merchandise sales in its latest quarter crashed forty one%, reflecting the closure of all its retailers in the coronavirus lockdown and the non permanent shutdown of its on the net operations.

Following explained retailer sales plunged fifty two% in the thirteen months to April 25, its fiscal first quarter, when on the net sales were down 32%.

The business explained the fall off in sales to date experienced been quicker and steeper than predicted in its March tension exam so it has improved its hard cash resources by way of asset sales, and by suspending share buybacks and dividend payments.

It has also taken additional actions to secure its debt funds by agreeing with its banking companies to waive money covenants in its Revolving Credit history Facility (RCF) for the coming year. It has also secured further borrowing facilities by way of the government’s Covid Company Funding Facility (CCFF).

Following explained it now considered its funds are as secure as when it declared in March, if not much more so.

It explained that even in its new worst circumstance situation, with whole year whole-rate sales down forty%, the mitigation it has place in position suggests it can function comfortably in just its hard cash resources and will finish the year with considerably less web money debt than at the finish of the previous year.

Following explained much will depend on its capability to keep on expanding the ability of its on the net operations in just the constraints of new secure operating techniques and on the timing of retailer re-openings.