UK fashion retailer Next lifted full-year guidance for the fourth time this year after a better-than-expected rise in interim profits and sales as customers flocked to its stores once they reopened from Covid pandemic lockdowns.
The company on Wednesday forecast pre-tax profit of £800m, up 6.9% from 2019 and £36m ahead of previous guidance of £764m. Full price sales for the rest of the year were expected to be 10% higher from 2019.
Profit for the six months to July 31 on a two-year basis rose 5.9% to £346.7m driven by a 7.6% increase in group sales to £2.2bn.
“When stores opened in mid April, the Retail bounce-back was far stronger than we anticipated. Sales in Retail stores have done better than planned, while online sales have fallen back less than we expected,” the company said.
“It appears that the wider economy has not suffered the long term damage many feared, for the moment at least. And, in particular, employment has held up well.”
“The positive sales trend has continued through August into the second half, despite significant stock shortages caused by Covid disruption to international supply chains. As a result (and not without some embarrassment) we are upgrading our guidance for the fourth time this year.”
