The group’s second-quarter sales performance beat its expectations by £50 million, and it has lifted its full-year profit guidance by £10 million.
04 August 2022
Fashion chain Next has upped its annual profit outlook after seeing full-price sales lift 5% in the past three months as the spell of hot weather boosted demand for summer clothing.
The group’s second-quarter sales performance exceeded expectations by £50 million, and the chain has lifted its full-year profit guidance by £10 million to £860 million.
Total sales jumped 5% in the three months to July 30 compared to last year, and leapt 23.8% higher versus to the same period in 2019 before the pandemic struck.
In-store retail has had a “renaissance” while growth in online shopping ground to a halt, the retailer said.
The post-pandemic resurgence in retail also boosted sales of formal wear as demand for social events spiked, while lockdown winners like home and sportswear dwindled.
But Next expects the unusually warm weather to subside and the impact of soaring inflation on consumer spending to worsen, dampening sales in the second half of the year.
