Next beats expectations with quarterly sales boost

Next has reported a return to sales growth, helped by a strong performance from its online and directory business.

The retailer enjoyed an 11.4% surge in directory sales in the 26 weeks to July 29, offsetting another period of decline in its retail arm.

A spell of warm weather, together with an overhaul of Next’s product ranges and online offering, also helped full-price sales rise by 0.7%, beating expectations.

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However, full-price sales at Next Retail fell 7.4%, and Next said it remained “cautious” about its outlook.

“In the current consumer environment we remain cautious and are budgeting for second half full price sales to be down ‐1.2%, which is in line with our performance in the first half,” the retailer said in a statement.

Next has narrowed its sales guidance range for the full year to ‐3.0% to +0.5%, a small improvement to the mid‐point of its previous full-price sales guidance.

However, Next still expects its full-year profits to fall by between 6.4% and 13.9% to £680m and £740m respectively.



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