Next full price sales up 8.1% as international drives outperformance
Next’s full price sales climbed by 8.1% in the 13 weeks to 31 October, which was £33 million ahead of its guidance of 5.8% growth for the second half.
The fashion retailer attributed all of the extra growth to the performance of its international business.
Subscribe to TRBAs expected, growth in the UK slowed compared with the first half of the year, with full price sales up 2% on last year, in line with Next’s guidance. The retailer said growth had been volatile, with unseasonably warm weather affecting clothing sales in September.
While UK online sales rose by 4.4% in the period, sales at Nexr’s high street stores declined by 1.7%.
International sales were up 32.2%, against Next’s forecast of 20.5% growth. Direct sales rose by 32.7%, while sales through third-party aggregators were up 31.3%. The retailer said the growth on Next Direct was driven by marketing being more profitable than expected, which enabled it to increase the amount spent on the activity by 67% on the prior year.
However, the additional £5 million of profit from international sales was offset by increased international operating costs.
Looking ahead, Next said it is maintaining its guidance for full-year pre-tax profit £1,25 billion, up 8.4%.
