(Sharecast News) – UK fashion retailer Next raised annual profit forecasts on Thursday after better-than-expected after strong second-quarter full-price sales and better-than-expected clearances of summer stock.
The chain raised guidance by £10m to £845m pounds, just six weeks after its last upgrade. Next also forecast annual full-price sales 1.8% higher than last financial year after they rose 6.9% in the three months to July 30.
However, the profit forecast provided on Thursday would result in a 2.9% fall year on year.
“Stock levels have been well controlled and we went into the end-of-season sale with surplus stock down -22% versus last year. Clearance rates, to date, are ahead of last year and ahead of our internal forecasts, which has added around £4m to group profit before tax,” the company said in a trading statement.
“We are maintaining our forecast for full price sales to be up +0.5% versus last year in the second half, which implies full price sales for the full year will be up +1.8%.”
Reporting by Frank Prenesti for Sharecast.com
