Next has increased its profit guidance for the full year by £20m, reaching £980m, indicating a 6.7% yearly growth. This decision comes in response to better-than-expected full-price sales during the first half of the year, surpassing initial forecasts.
- Full-price sales in the recent quarter rose by 3.2%, outperforming expectations by £42m, contrary to the 0.3% decline previously anticipated due to last year’s exceptional summer.
- UK’s second-quarter sales slightly increased by 0.4%, while overseas online sales impressively grew by 21.9%.
- The first half of the year saw a 4.4% rise in full-price sales year-on-year, exceeding initial expectations.
- Profit guidance was bolstered by £11m from sales and £9m from logistics cost savings.
Next has optimistically increased its profit guidance for the current fiscal year by £20 million, now forecasting £980 million, which marks a significant 6.7% growth compared to the previous year. This adjustment comes as the retailer observed an unexpected surge in full-price sales during the first half, far exceeding their sales expectations.
In the latest 13-week trading period ending on 27 July, Next reported a 3.2% increase in full-price sales, which is a remarkable £42 million above its predictions. Initially, the retailer had forecasted a slight decline of 0.3% in full-price sales, largely accounting for the exceptional summer season experienced last year.
The UK market witnessed a modest increase of 0.4% in second-quarter sales both online and in retail stores. More notably, Next’s online sales overseas showed a robust growth of 21.9%, reflecting the retailer’s expanding digital footprint and successful international strategies.
During the first half of the current fiscal year, Next’s full-price sales rose by 4.4% compared to the same period last year. This growth surpassed the company’s previous guidance, which anticipated a 2.5% increase, showcasing the brand’s strong market position.
Next attributes the £20 million rise in full-year profit guidance to an £11 million increment from sales outperformance and a £9 million reduction in logistics expenses.
Next’s strategic performance and cost efficiencies have enabled it to revise its profit outlook positively, reflecting robust operational execution.
