Next had a strong first half with full price sales up 4.4% compared to the previous year, exceeding expectations.
As a result, the retailer has upped its profit guidance for the full year and now expects to reach £980m, a 6.7% rise from last year.
In the second quarter ending 27 July, full price sales grew by 3.2%, exceeding forecasts by £42m. This strong showing was notable given the challenging comparison to last summer, which it called “exceptionally favourable for clothing retailers”.
Meawhile, UK retail sales edged up by 0.4% in the quarter, though the standout performer was its overseas online arm, which jumped 21.9%.
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Total group sales, which include subsidiaries such as FatFace and Reiss, rose by 8% in the first half, reflecting the positive impact of recent acquisitions.
Looking ahead, the business has maintained its guidance for full price sales to grow by 2.5% in the second half, reflecting cautious optimism in an uncertain retail environment.
“This might seem cautious when compared with the performance in the first half, which was up 4.4%,” said Next. “However, when compared to two years ago, growth in the first half and the forecast for the second half are almost identical.”
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