British clothing retailer Next raised its full year profit outlook on Thursday after strong online trading overseas drove a better-than-expected second quarter sales performance.
With more than 800 stores in the UK and Ireland and nearly 8 million online customers, Next is often considered a useful gauge of how British consumers are faring.
Next said full price sales in its second quarter to July 27th rose 3.2 per cent - ahead of guidance of a fall of 0.3 per cent and versus growth of 5.7 per cent in the first quarter.
The group had previously flagged that it expected sales to edge lower in the second quarter because last year it benefited from particularly warm weather from late May to the end of June which boosted sales. In contrast the weather in the same period this year has generally been poor.
Next said its full price sales in the UK, online and stores combined, were only slightly ahead of expectations, up 0.4 per cent. However, it said its overseas sales online were much better than expected, up 21.9 per cent.
The group said it was now forecasting profit before tax of £980 million in its full 2024/25 year, up from guidance of £960 million previously and 6.7 per cent ahead of the £918 million made in 2023/24.
Next kept its forecast for full price sales in the second half to be up 2.5 per cent.
The group’s performance looks much stronger than the wider market. Its shares are up 30 per cent over the last year.
- Reuters
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