Full-price sales at Next in Q1 (the 13 weeks ended 2nd May) were up +6.2% YoY, outperforming the forecasted 4.0% growth, and ahead by £28m.
The retailer says the overachievement in sales was the result of "exceptionally strong" growth in the first five weeks of the year (11.8%). In Q1, online sales were up 10.1%, while retail store sales were down 3.4%.
The additional sales added a further £8m of profit, prompting Next to increase its guidance for the full year to £1,218m (guidance for full price sales for the rest of the year will stay as is).
The retailer says it plans to mitigate the ongoing cost increases caused by the conflict in the Middle East with "a combination of moderate price increases in some international territories and operational cost savings".
Next says trade in the quarter can be broken down into three distinct periods: weeks 1-5, before the conflict in the Middle East, and before last year’s UK sales strengthened as a result of unusually warm weather; weeks 6-8, when the conflict in the Middle East began, with considerable disruption to service in the region; and weeks 9-13, as trade began to recover in the Middle East and delivery services returned to normal.
Compared to two years ago, UK sales growth remained consistent in all three periods, up around 13%, the retailer adds.
Next expects UK sales in Q2 to be up 1.0% YoY – Q2's results last year benefited from exceptionally warm weather and competitor disruption, it concludes.
