In a trading update, Next has shared "better than anticipated" full price sales results for November and December, up +5.7% YoY in the nine weeks to 30th December – £38m higher than the retailer's previous guidance for the period of +2.0%.
Next has therefore increased its full year PBT guidance by £20m to £905m, up +4.0% YoY, stating that, of the £20m increase, £17m came from the surplus sales to date, and £3m from an upgraded forecast for full price sales in January.
Guidance for full price sales on continuous business is up +2.5%. After accounting for the effect of recent acquisitions, Next expects group sales, including subsidiary companies, to be up by +6.0%. Guidance for group PBT for the year ahead is up +5.0%.
"On the face of it, the consumer environment looks more benign than it has for a number of years," says Next, "albeit there are some significant uncertainties" – the retailer cites the possibility of a weakening employment market, expiring mortgage deals and supply chain risks among them.
