The early onset of cold weather has positively impacted sales, prompting a revised profit forecast by Next.
- Sales at Next have increased by 7.6% in the latest quarter compared to the previous year.
- The rise in sales exceeded the company’s expectations by 2.6% for this period.
- UK sales experienced a growth of 5.8%, with online revenues rising by 8%.
- Next anticipates full-year sales to reach £6.27 billion, marking a significant upturn.
Next has adjusted its profit outlook upwards as a result of an early cold spell that has driven consumer demand. This climatic change led to a notable 7.6% increase in sales for the 13-week period ending 26 October, surpassing the company’s forecast by 2.6%. Next attributes this increase to the colder weather experienced compared to an unseasonably warm period the previous year.
Total sales within the UK experienced a healthy growth of 5.8% during this timeframe, further supported by the robust performance of its online segment, which saw revenues climb by nearly 8%.
The fashion retailer has consequently revised its profit guidance for the full year, increasing it from £995 million to £1.005 billion. Additionally, it projects that its year-end sales will hit £6.27 billion, reflecting an upward revision of its fourth-quarter sales forecast from a 1% to 3.5% increase.
This financial update follows Next’s strategic acquisition of a 16% stake in homeware and lifestyle brand Rockett St George. This move is expected to expand product offerings and enhance the brand’s market reach. Rockett St George has expressed confidence in the potential for growth facilitated by this partnership.
These developments highlight Next’s ability to effectively leverage market conditions and strategic investments to deliver strong financial results.
