Next ups profit guidance after first quarter sales rise
Next has upped its profit guidance after full price sales came in better than expected in its first quarter with an increase of 6.2% year-on-year compared to a previous forecast of 4%.
The fashion and home retailer said the performance in the 13 weeks to 2 May was the result of exceptionally strong growth in the first five weeks of the year when sales climbed by 11.8%.
Subscribe to TRBSales in the UK rose by 4.4% compared to a previous guidance of +1.3%.
The additional £28 million in sales in the period added £8 million to profit which means Next is raising its full year pre-tax profit guidance to £1.218 billion from a previous £1.21 billion. The retailer is maintaining its guidance for full price sales for the rest of the year.
Next said it is planning to mitigate ongoing cost increases caused by the conflict in the Middle East with a combination of moderate price increases in some international markets and operational cost savings.
