Next raises FY profit guidance after robust Q2

1145
Christmas Trading
// Next online sales up 12% in Q2
// Retailer raises full year profit guidance by £10m
// In-store retail sales dropped 4.2%

Next has raised its forecasts for sales and profits after a better-than-expected performance in its second quarter.

The largest clothing retailer by sales in the UK reported a boost in online sales for its second quarter to July 27, after a 12 per cent rise in online sales for the period.

Meanwhile in-store retail sales dropped 4.2 per cent for the quarter, and 3.9 per cent overall in the first half of the year, reflecting the continued pressure under its high street stores.

Full price sales in the quarter rose four per cent year-on-year, 4.5 per cent better than the guidance of a 0.5 per cent dropped anticipated in Next’s May trading statement. 

“Following the better than anticipated sales performance in the second quarter, we are increasing our full price sales guidance for the second half from 1.7 per cent to three per cent, in line with our full price sales growth in May and June,” Next said in a statement this morning.

The bellwether retailer said this would increase its full-year profit guidance by £10 million to £725 million, up 0.3 per cent on the previous year.

It added that earnings per share would grow by 5.2 per cent. 

The retailer noted that it would announce the results for the first half of the year on September 19.

Click here to sign up to Retail Gazette‘s free daily email newsletter