Next has revised its full-year profit forecast upward by £20 million, reaching £980 million, marking a 6.7% increase year on year.
- The company’s full-price sales rose 3.2% in the 13 weeks to July 27, surpassing expectations by £42 million.
- UK online and retail full-price sales saw a modest rise of 0.4% in the second quarter, with international online sales soaring by 21.9%.
- In the first half of the year, full-price sales increased by 4.4%, exceeding the previous forecast of a 2.5% rise.
- Profit guidance was raised due to £11 million in additional sales and £9 million savings achieved in logistics.
Next has revised its full-year profit forecast upward by £20 million, reaching £980 million, representing a 6.7% increase year on year. This adjustment was driven by stronger than expected full-price sales during the first half of the year. The company’s robust performance underscores its resilience amidst fluctuating retail conditions.
In its latest trading update, Next reported a 3.2% growth in full-price sales over a 13-week period ending on July 27. This figure notably exceeded the company’s expectations by £42 million. This performance contrasts with the company’s initial forecast of a 0.3% decrease, which was based on the outstanding sales figures from the previous summer.
Within the UK market, online and retail full-price sales edged up by 0.4% during the second quarter. However, it was in the online international segment where the company saw remarkable growth, with full-price sales increasing by 21.9%. This international surge played a significant role in offsetting local market challenges.
During the first half of the fiscal year, Next enjoyed a 4.4% increase in full-price sales compared to the same period last year, surpassing its previous guidance which anticipated a 2.5% growth. The company remains optimistic about maintaining a 2.5% increase in full-price sales for the latter half of the year.
The decision to elevate the profit guidance by £20 million resulted from £11 million in additional sales revenues and a £9 million reduction in logistics costs. The strategic cost-saving measures have evidently contributed to bolstering the overall profit outlook.
Next’s strategic initiatives and strong sales performance have effectively enhanced its financial outlook for the year.
