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Next PLC on Wednesday raised its full-year outlook for the third time in three months after sales topped expectations. The Leicester-based clothing and homewares retailer said full price sales in the third-quarter to October 26 rose 7.6% on-year, beating guidance of 5.0%. ‘We believe the strong performance was driven by the early arrival of colder weather this year, versus an unusually warm September and early October last year,’ Next said in a statement. For the fourth-quarter, it now expects full price sales growth of 3.5%, its outlook lifted from 2.5%. Full-year pretax profit guidance has been upgraded to £1.01 billion from £995 million. In September, Next had raised its outlook from £980 million, itself increased from £960 million in August. The profit measures excludes items such as the cost of brand amortisation. The new guidance would represent a 9.5% rise on the year prior when the firm reported pretax profit of £918 million. In response, shares in Next rose 1.5% to 10,225.00 pence each in London on Wednesday morning. The wider FTSE 100 was down 0.4%. Next expects total group sales for the full year of £6.27 billion, up 7.4% on last year, and higher than prior guidance of £6.23 billion. This is 2.5% higher than expected growth in full price sales of 4.9%. ‘The difference is the result of acquisitions completed during the last year. We acquired 97% of FatFace in October 2023 and increased our equity share in Reiss in September 2023 and June 2024; we now have a 74% shareholding in Reiss,’ Next explained. Next will report on Christmas trading on January 7. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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