Investors are keenly observing the performance of Next, particularly anticipating a potential upgrade in the company’s sales guidance.
- Next reported a 4.4% increase in full-price sales for the first half of the fiscal year.
- The retailer has maintained its full-price sales guidance for a 2.5% increase in the second half.
- A recent update showed an uplift in profit guidance by £20m, attributed to stronger sales and logistics cost savings.
- Analysts speculate that recent trading could prompt an upward revision of the current sales guidance.
Investors are closely monitoring Next’s financial trajectory as the retailer prepares to release its half-year results. The focus is on whether the company will revise its sales guidance upwards, following a robust performance in full-price sales.
Next announced a commendable 4.4% rise in full-price sales during the first half of the year. This performance has set a positive tone for the company’s financial outlook.
Looking ahead, the retailer has projected a 2.5% increase in full-price sales for the latter half of the year. This cautiously optimistic guidance reflects confidence in maintaining growth momentum.
In August, Next adjusted its annual profit guidance upwards by £20 million, reflecting a 6.7% year-on-year increase. The company attributed this to better-than-expected sales and £9 million in logistics cost savings, resulting in a comprehensive improvement to its financial standing.
Analysts from Deutsche Bank have expressed the possibility that the recent six-week trading period could bolster Next’s confidence to enhance its existing 2.5% sales growth guidance for the remainder of the year.
The upcoming financial results are pivotal in determining whether Next will adjust its sales guidance based on recent performance.
