In an unscheduled update Next has revealed better trading than expected, upping its sales and profit guidance for the year.
The Leicestershire-based company said: “Trading in the last seven weeks has been materially better than the guidance we issued in May and we are updating the market accordingly.”
Full price sales in the first seven weeks of the second quarter were up 9.3% versus last year. It compares to Next’s guidance of -5%.
In the period, Next has beaten its full price sales estimates by £93m. As a result the firm said: “We are upgrading our full price sales guidance for the full year by £137m and our full year profit guidance by £40m to £835m.”
Next has put the reason for the improved performance down to the onset of warmer weather, particularly coming after a wet and cold April, and, in an inflationary environment, increases in annual salary uplifting household income. Next added: “We do not think it is a coincidence that sales stepped forward so markedly at a time of year when many organisations make their annual pay awards.”
