Next ups full year profit guidance following surge in first half sales
Next has raised its full year profit guidance after a strong performance in the first half of its financial year,
In the six months to July 2024, total group sales climbed by 8% to £2.95 billion as full price sales surged by 4.4%.
Meanwhile, pre-tax profit at the fashion and homeware retailer increased by 7.1% to £452 million.
However, sales in the UK only rose by 1% in the half year following tough comparisons with last year when there was exceptionally warm weather in the retailer’s second quarter. In addition, Next brand sales were down 0.9% in the UK which the retailer said was “potentially worrying.”
It added: “We believe the underperformance was mainly because our fashion ranges did so well during the exceptionally warm weather last year. The sharp recovery in the last six weeks, as weather comparatives have materially turned in our favour, is confirmation of this theory.”
Next now expects its group sales in the year to January 2025 to increase by 6.6%, with full price sales up 4%, after the latter exceeded expectations in the first six weeks of the second half with an increase of 6.9%.
It has also upped its full year pre-tax profit guidance by £15 million to £995 million.
The retailer is now looking to benefit from new avenues of growth, including expanding the Next Brand overseas, developing new brands and third party licenses, and generating revenue from its Total Platform and associated equity investments.
