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Next PLC on Thursday lifted its profit outlook and said its Christmas sales topped expectations, though it predicts the going to be tougher in its upcoming financial year.
Next shares were 5.4% higher at 6,424.00 each in London on Thursday morning. It was the best-performing FTSE 100 constituent during early dealings.
For the year ending in January 2023, the Leicester, England-based clothing and homeware retailer increased its 2022 pretax profit guidance to £860 million, from £840 million. The guidance would represent growth of 4.5% against the year prior, if achieved.
Next said in the six months to December 30, full price sales were up 2.2% against the previous year. In the three months to December 30, full price sales were up 4.7% against the year prior.
In the nine weeks to December 30 alone, largely encompassing the key festive trading spell, they were up 4.8% annually.
‘Sales in the Christmas period have been better than we anticipated,’ the company explained.
Next, nonetheless, said it remained ‘cautious’ in its outlook for the year ahead, with initial guidance for the year ending January 2024 at £795 million for pretax profit.
It also expects a full price sales decline of 1.5% in that year against the current year.
During the current financial year, Next has tinkered with its guidance on several occasions. It initially forecast pretax profit of £860 million, but then lowered this to £850 million in March. It raised its outlook back to £860 million in August, but cut it to £840 million in September.
By Greg Rosenvinge, Alliance News reporter
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