Next boosted by better than expected full price sales
Next has increased its full year pre-tax profit guidance by £10 million after full price sales came in better than expected over the last three months.
In a second quarter trading statement, the retailer said full price sales rose by 6.9% on last year.
A focus on controlling stock levels meant that Next entered its end-of-season sale with surplus stock down 22% on the same time a year ago. Furthermore, clearance rates have come in ahead of internal forecasts, which has added around £4 million to the retailer’s pre-tax profit.
While online sales climbed by 10% in the period, sales at Next’s stores increased by 2.2%.
Next is maintaining its forecast for full price sales to edge up 0.5% in the second half, which means it now expects full price sales for the year to rise by 1.8%. It is also expecting pre-tax profit to be £10 million higher than anticipated in its last trading statement so is raising its guidance to £845 million.
