In the second quarter, full price sales at Next plc were up 3.2 percent versus last year, exceeding the company’s expectations by 42 million pounds. The company had forecasted that sales in the second quarter would be down 0.3 percent.
Next raises full year profit outlook
Next has increased profit guidance for the full year by 20 million pounds to 980 million pounds, up 6.7 percent versus last year.
The company said in a release that the profit improvement came from additional sales of 11 million pounds and cost savings of 9 million pounds, mainly in logistics.
Total Group sales for the full year are expected to be up 6 percent on last year, which is 2.6 percent higher than the expected growth in Next trading full price sales of 3.4 percent.
The company is maintaining its guidance for full price sales in the second half to be up 2.5 percent versus last year.
Highlights of Next’s financial performance
In the first half period, full price sales were up 4.4 percent versus guidance of to be up 2.5 percent. Total group sales, including markdown, subsidiaries and investments, were up 8 percent during the period.
The company’s full price sales in the UK, online and retail combined were up 0.4 percent, while overseas sales online were up 21.9 percent. Group sales, which include sales in subsidiaries, were up 8 percent in the first half.
The company added that the additional growth in group sales was contributed by the acquisition of FatFace and an increase in shareholding in Reiss, both of which occurred in the third quarter last year.
The company acquired 97 percent of FatFace in October 2023 and increased equity share in Reiss from 51 percent to 72 percent in September 2023.