21 July 2024, 10:49
By Furniture News Aug 03, 2023

Next performs ahead of expectations in Q2

Full-price Q2 sales at Next were up +6.9% YoY, the retailer reports, with the end-of-season sale performing well and clearance rates ahead of expectations.

In June, Next issued an unscheduled trading statement after a period of much-better-than-expected full-price sales (see related), mainly driven by the exceptionally warm weather – since then, full-price sales have been up +3.7% YoY, ahead of Next's guidance of +0.5%. Online sales gew by +10% during the quarter, and retail (store) sales by +2.2%.

Next is therefore increasing its full-year guidance for group profit before tax by £10m to £845m.

The retailer adds that stock levels have been well controlled, and that it went into the end-of-season sale with surplus stock down -22% on last year. Clearance rates, to date, are ahead of last year, and ahead of internal forecasts, adding around £4m to the group's PBT.

Next is maintaining its forecast for full-price sales to be up +0.5% YoY in H2, which implies full-price sales growth for the full year of +1.8%.

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