Next posts better than expected Christmas performance
Next has posted better than expected full price sales in the nine weeks to 30 December with a year-on-year uplift of 4.8%.
This was around £66 million more than the retailer’s previous guidance of a fall of 2% for the period.
Due to sales being particularly strong in its high street stores, the retailer said it thinks it underestimated both the negative effect Covid on store sales last year and how improved stock levels would impact both its stores and online business in 2022.
Next also said that its end-of-season sale is progressing well and that clearance rates are ahead of expectations.
As a result of the performance, Next has increased its full year pre-tax profit guidance by £20 million to £860 million to mark a 4.5% uplift on the previous year.
However, the company is remaining cautious in its outlook for the year ahead due to inflation and rising mortgage costs dampening demand. Its initial guidance for the year ending January 2024 points to full price sales being down 1.5% and pre-tax profit declining by 7.6% to £795 million.
