// Next sales rise 9.3% thanks to warmer weather and continued wage increases
// The retailer is upgrading its full price sales guidance for the full year by £137m and its full year
profit guidance by £40m to £835m
Next has seen full-price sales rise 9.3% over the past seven weeks, compared with guidance predicting a 5% decline thanks to warmer weather and continued wage increases.
The high street giant said said trading has been “materially better” than the sales guidance it gave shareholders last month and has lifted its sales and profit guidance for the year as a result.
Next has now upgraded its sales guidance for the year by £137m and increased its full-year profit expectations by £40m to £835m
The retailer also said it has surpassed its predicted full-price sales by around £93m
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“The onset of warmer weather has made a significant difference to our performance, particularly coming after a wet and cold April,” it said in a statement.
It added that it believes annual pay rises helped trading, after many people received their annual bonuses in April while there was also an increase in the national living wage.
The retailer added: “If recent pay rises and the sudden change in weather have indeed contributed to the current over-performance, then it is reasonable to expect that the effect will diminish over time because ongoing inflation will slowly erode the positive effect of annual pay increases.
“This is why we are not anticipating the current performance to continue at the same level going forward, albeit we have moderately improved our guidance for the rest of the year.”
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