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LONDON, March 19 (Reuters) - British clothing retailer Next
said on Thursday the industry faced an unprecedented
crisis due to coronavirus outbreak but said its balance sheet
and margins would help it weather the storm.
The group, which has about 700 stores, with about 500 of
those in Britain and Ireland, and also operates its online
Directory and catalogue business, said it was preparing for a
significant downturn in sales during the coronavirus crisis.
It said total brand sales fell 8.8% in the week commencing
March 8 and were down 30% from March 15-17.
Next said that, given the unprecedented nature of the
crisis, it could not predict the extent of the impact on its
retail and online sales.
It said its stress test showed the business could
comfortably sustain the loss of more than 1 billion pounds
($1.2 billion), or 25%, of annual full price sales, without
exceeding its current bond and bank facilities.
Next said its priorities were to keep its workplaces and
shops as safe as possible for customers and staff, securing the
cash resources of the business and developing its online
platform and product ranges throughout the next six months.
($1 = 0.8646 pounds)
(Reporting by James Davey; Editing by Kate Holton and Edmund
Blair)
Next (NXT)