Next raises full year profit guidance after ‘better than expected’ first half
Next has raised its full year profit guidance after total sales, including markdowns, increased by 8.9% in its first half.
The company said the performance in the six months to July was better than expected, both in the UK and overseas. Full price sales rose by 7.7% while group sales, including subsidiaries, increased by 9% in the period.
Subscribe to TRBLooking at the performance of Next’s channels, UK online sales climbed by 7.4%, compared with Next’s guidance of 4% growth. Retail stores also performed better than anticipated, with a decline of 1.7% compared with guidance of -3.3%.
Meanwhile, online international sales saw a 23.9% uplift, despite the impact of disruption caused by conflict in the Middle East.
The company posted a 10.5% increase in pre-tax profit to £569 million in the period. It has now increased its profit guidance for the full year by £12 million to £1.255 billion, as a result of a small upgrade in sales expectations and additional cost savings, mainly in warehousing.
Next said much of its first half performance was driven by its continued focus on improving product, driving international growth, upgrading infrastructure, and controlling costs.
