August 15, 2022
Advances profit forecast after shoppers return to the store

UK fashion retailer Next raised its full-year profit forecast as warmer weather boosted first-half sales.

The company, whose analysis of sales trends is closely watched by the rest of the industry, said it now expects full-year pre-tax profit of £860mn, up £10mn over its previous expectation and up from last year 4.5 percent ahead.

It said in-store sales in the second quarter were “much better than anticipated”, up 12 per cent last year and 4.7 per cent over pre-Covid levels, gradually continuing a long trend of falling store sales.

This was then attributed to the disappearance of competitors such as Arcadia and to consumers feeling more confident about going to physical stores.

However, the group said it was not counting on strong sales growth during the second half of the year, as the weather-related boost would ease and discretionary income would come under more pressure.

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