Next, a prominent retailer, has enhanced its profit forecast due to improved sales trajectories.
- The company has raised its annual profit guidance from £995m to an impressive £1.01bn.
- Fourth quarter full-price sales growth is anticipated to be 3.5%, reflecting a boost of 1.0% over previous forecasts.
- Total group sales for the year are projected to increase by 7.4%, reaching £6.27bn.
- Contributing factors include early colder weather and strategic acquisitions.
The renowned British retailer, Next, has announced an upward revision of its profit forecast for the full year, raising the figure from £995 million to £1.01 billion. This adjustment is attributed to a notable enhancement in sales performance.
For the fourth quarter, Next anticipates a 3.5% growth in full-price sales, a rise of 1.0% compared to earlier expectations. This translates to an additional £43 million in full-price sales and a £10 million increase in profit. These figures indicate a robust period of trading for the retailer.
Throughout the fiscal year concluding on 26 October, the total group sales are expected to climb by 7.4%, totalling £6.27 billion. This is significantly above the projected growth rate of 4.9% in full-price sales communicated in September.
A key factor in this performance is the early arrival of colder weather, contrasting with the warm conditions experienced in the prior September and early October. Additionally, strategic acquisitions have bolstered sales growth. Notable acquisitions include a 97% stake in FatFace completed in October 2023, and an increased equity share in Reiss, culminating in a 74% ownership by June 2024.
Next is scheduled to provide an update on its sales performance up to 28 December on 7 January 2025. Investors and stakeholders will be keenly observing the outcomes of these strategic actions.
Next’s strategic decisions and favourable weather conditions have collectively driven its upgraded profit expectations.
