NEXT RETAIL LTD PRESCOT

The primary financial objective of the Next group remains the delivery of sustainable long term growth in earnings per share. Next believes this objective is best achieved by continuation of the following strategies in its operating businesses: Improving and developing Next product ranges, success in which is reflected in total sales and like for like sales performance; Profitably increasing Next Retail and Lipsy selling space. New store appraisals must meet demanding financial criteria before the investment is made and success is measured by monitoring achieved sales and profit contribution against appraised targets; Increasing the number of Next Directory customers and their average spend; Managing gross and net margins by better product sourcing, continuous cost control and efficient management of stock levels and working capital; Maintaining the Group's financial strength through an efficient balance sheet and financing structure.