UK's Next nudges up profit guidance after robust quarterly sales
Next's Financial Performance and Sales Growth
Second-Quarter Sales Exceed Expectations
LONDON, Aug 5 (Reuters) - British clothing retailer Next edged up its annual profit outlook for the third time this year on Wednesday, as it reported a better-than-expected 9.2% rise in second-quarter full-price sales, benefiting from the country's hot weather.
Next had forecast that second-quarter full-price sales growth would slow to 4.0% after growth of 6.2% in its first quarter, reflecting a tough comparative number in the same period last year.
Breakdown of Sales Performance
However, sales were £70 million ($94.2 million) ahead of forecast - £19 million in the UK and £51 million overseas.
Factors Contributing to Outperformance
Next attributed the over-performance to the weather in the UK being as warm as last year's exceptional summer, which it had not anticipated, and the release of pent-up demand in the Middle East and Northern Europe after a weaker first quarter in both territories.
Also, Next said it was able to spend much more on profitable marketing than it had anticipated.
Updated Profit Guidance and Outlook
The group said it now expected a year to January 2027 profit before tax of £1.243 billion, versus previous guidance of £1.218 billion and the £1.158 billion made in 2025/26.
Next kept its forecast for full price sales for the rest of the year to be up 5.0% versus last year.
Additional Information
($1 = 0.7432 pounds)
(Reporting by James Davey; editing by Sarah Young and Paul Sandle)
