Next has posted first-half sales towards the top end of company guidance, showing its resilience against a tough consumer backdrop.
The firm, which runs over 500 stores in Britain and Ireland as well as the Directory home shopping business, said total sales rose 3.2 per cent, excluding VAT, in the 26 weeks to July 30th.
That compares with company guidance for a rise of 1.5-4 per cent and first-quarter growth of 5.2 per cent, an outcome boosted by exceptionally warm weather over Easter and spending ahead of the Royal Wedding holiday weekend.
First-half sales at Next's stores fell 1.7 per cent, while Directory sales increased 15.1 per cent.
Next said its full-year profit forecast remained in line with previous guidance, before adjusting for the sale of its Ventura business last month.
The firm is forecasting a pretax profit of £527-577 million, excluding Ventura, implying a range of down 3 per cent to up 6.2 per cent on the 2010-11 outcome.
It forecast basic EPS of 230-250 pence, assuming £225 million of share buybacks.
UK consumers are grappling with rising prices, particularly in fuel and utilities, subdued wages growth, limited credit, a stagnant housing market, government cutbacks and fears of interest rate rises.
Next expects cost price inflation experienced in the first half to continue into the second half at broadly the same rate of up 8 per cent.
It anticipates 2012 will be a more benign year for cost price inflation.
Next shares, which have risen by a fifth over the last six months, closed at 2,362 pence yesterday, valuing the business at about £4 billion.
Reuters
