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Next raises full year guidance after strong Q2 sales beat forecast

Next has posted a 9.2% increase in full-price second quarter sales, which meant they were £70 million ahead of forecast. The fashion and homeware retailer attributed…

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Next raises full year guidance after strong Q2 sales beat forecast

Next has posted a 9.2% increase in full-price second quarter sales, which meant they were £70 million ahead of forecast.

The fashion and homeware retailer attributed the performance in the 13 weeks to 1 August to warm UK weather, the release of pent-up demand in the Middle East and Northern Europe following a weaker first quarter in both territories, and increased spend on profitable marketing.

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While online UK sales rose by 5%, store sales edged down 0.3%. This meant total UK sales increased by 2.8% in the period.

Meanwhile, total international sales climbed by 36.9%, although growth is expected to moderate to 14% in Next’s second half.

Next is now expecting full-price sales to increase by 6.3% over the full year, with second-half growth of 5% and UK sales up 2.8% on last year. Full-year pre-tax profit guidance has been upped to £1.243 billion from a previous guidance of £1.218 billion, representing year-on-year growth of 7.3%.

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