Next raises full year sales and profit forecasts
Next has raised its annual sales and profit forecasts after Next brand full price sales edged up 3.5% in the first half of its financial year.
The retailer said some 1.7% of the sales came from the opening of profitable new space.
Full price sales for Next Retail rose by 0.8% in the 26 weeks to 25 July, while Next Directory online and catalogue sales increased by 7.5%.
Total sales including markdown sales were up 3.3%. The retailer said total stock for the end-of-season sale was up 4.8% on last year. Clearance rates were lower than last year but in line with internal forecasts.
Sales were better than expected and ahead of the 0% to +3% guidance range Next gave in March.
In a statement, Next said: “We believe the improvements experienced at the end of the season were mainly driven by warmer weather.”
As a result, Next has revised its sales and profit guidance for the full year. The mid-point of Next’s full year profit guidance has been increased by 1.9% from £810 million to £825 million, while its full year sales guidance range has been increased to up 3.5% to 6%.
