UK retailer Next looking for acquisition opportunities
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British clothing retailer Next is looking for small acquisition opportunities thrown up by the coronavirus pandemic, its boss said on Thursday.
“I don’t think you’ll see an enormous deal go through but we are looking for active opportunities…in particular certain platform type opportunities,” Chief Executive Simon Wolfson told Reuters.
In May, Next expanded its beauty business by taking on five former Debenhams beauty departments, while this month it agreed terms with Lbrands to set up a joint venture selling Victoria’s Secret and Pink products under licence in the UK and Ireland.
Next raised its profit outlook for the second time in two months on Thursday as it reported strong recent trading, attributed to cool weather and fewer people taking overseas holidays due to the COVID-19 pandemic.
Shares in the group were up 1% at 0802 GMT on Thursday, paring 2020 losses to 11%, after the group also forecast a 462 million pound reduction in net debt for its year to end-Jan. 2021.
“Even in the event of another (national) lockdown it looks like the company will still make a significant profit and still reduce its year-end debt,” ChWolfson told Reuters.
