Monday, September 23, 2024

Next weathers the storm as it reports better-than-expected sales

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Clothing chain Next has reported better-than-expected sales and raised its profits forecast for the year despite the wet start to the summer.

The retailer said it had been bracing for a 0.3% fall in full-price sales between the end of May and the end of July – when compared to the same period last year when the UK experienced “exceptionally favourable” weather.

However, Next said sales instead rose by 3.2%, exceeding its expectations by £42m.

The high street bellwether, which has more than 800 branches in the UK and nearly eight million online customers, also increased its profit guidance for the full year by £20m to £980m.

The company said it had been particularly boosted by overseas online sales, which soared by nearly 22% during the second quarter, a trading statement on Thursday said.

Next also credited its takeover of rival FatFace last year and the increase in its stake – from 51% to 72% – of fashion brand Reiss.

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It comes after trade association the British Retail Consortium (BRC) recently warned retailers had suffered a “gloomy” start to the summer due to a “colder than usual June“.

Retail sales by volume fell by 1.2% in June, according to the Office for National Statistics, with the start of July also hit by heavy rain.

However, last month the BRC expressed optimism that major events such as the Euros, Wimbledon and the Olympics would help encourage shoppers to open their wallets again.

Retailers will be hoping that the better weather in recent days might also increase footfall this summer.

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