Next raises full year profit forecast after warm weather boosts sales
Next has reported that its first quarter full price sales were better than expected and around £40 million ahead of its internal forecast after trade was boosted by the unusually warm weather in recent weeks.
As a result, the fashion and homewares retailer has upgraded its full year profit forecast.
Next’s online full price sales climbed by 18.1% in the 14 weeks to 7 May although sales on the same basis in its high street stores fell by 4.8%. The result meant that first quarter sales rose by 6% overall.
The retailer said the sales over-performance adds around £12 million to its full year profit which means it is increasing its central guidance for group profit accordingly.
Next has now raised its central profit guidance for the full year to £717 million compared to a previous £705 million.
In March Next said the year to January 2018 had been the most challenging in its 25-year history as both its sales and profits declined.
The company now expects full price sales growth for the full financial year to be around 2.2%.
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