Next raises full year profit forecast after warm weather boosts sales
Next has reported that its first quarter full price sales were better than expected and around £40 million ahead of its internal forecast after trade was boosted by the unusually warm weather in recent weeks.
As a result, the fashion and homewares retailer has upgraded its full year profit forecast.
Next’s online full price sales climbed by 18.1% in the 14 weeks to 7 May although sales on the same basis in its high street stores fell by 4.8%. The result meant that first quarter sales rose by 6% overall.
The retailer said the sales over-performance adds around £12 million to its full year profit which means it is increasing its central guidance for group profit accordingly.
Never Miss a Retail Update!Next has now raised its central profit guidance for the full year to £717 million compared to a previous £705 million.
In March Next said the year to January 2018 had been the most challenging in its 25-year history as both its sales and profits declined.
The company now expects full price sales growth for the full financial year to be around 2.2%.
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