Next reports better than expected sales
Next has posted better than expected first quarter sales and raised its full year profit guidance.
In the 13 weeks to 26 April, the retailer’s full price sales were 11.4% higher than last year, which was considerably more than its forecast of 6.5% growth.
In a trading statement, Next attributed much of the over-performance to better weather, which helped it to sell more summer-weight clothing, especially in its high street stores. However, it also said that some sales will have been pulled forward from its second quarter, which means it is not increasing its sales guidance for the current period or the rest of the year.
Next reiterated is caution about second half sales due to comparative numbers from autumn/winter 2024 being much stronger. It also expects the full effects of this April’s National Insurance increases to begin filtering through to the wider economy in the period.
Due to the additional £55 million in first quarter sales, Next is raising its guidance for full year pre-tax profit by £14 million to £1.08 billion.
