British clothing and homeware retailer Next has raised its profit forecast after posting a better-than-expected rise in full-price sales for the four months to April 30..
The company said on Tuesday that it now expects pre-tax profit for the full year to January 2024 to be in the range of 910 million pounds and 950 million pounds, up from a previous guidance of 840 million pounds to 880 million pounds..
Next attributed the improved outlook to strong demand for its spring and summer collections, as well as the success of its online operations. The company said that its online sales grew by 11.4% year-on-year in the four-month period, while store sales increased by 1.9%..
Total sales for the period rose by 4.4% to 2.26 billion pounds, with full-price sales up by 5.4%. Next said that the increase in full-price sales was particularly encouraging, as it indicated that customers were willing to pay more for its products despite the challenging economic environment..
The company also said that it is confident in its ability to continue to deliver strong results in the face of rising costs and uncertainty in the consumer market. Next noted that it has a strong balance sheet and a loyal customer base, and that it is well-positioned to weather any economic headwinds..
The retailer’s upbeat outlook was welcomed by investors, with its shares rising by more than 4% in early trading on Tuesday. Next’s results are seen as a positive sign for the UK retail sector, which has been struggling in recent years due to the rise of online shopping and the impact of the COVID-19 pandemic..
Next’s strong performance is a testament to the company’s ability to adapt to the changing retail landscape. The company has invested heavily in its online operations and has also been successful in developing new and innovative ways to engage with customers. Next is also known for its strong brand identity and its focus on quality products, which has helped it to attract and retain a loyal customer base..
The company’s positive outlook is also a sign that the UK consumer is starting to regain confidence after a difficult few years. The rise in full-price sales suggests that customers are willing to pay more for products that they believe are worth it, which is a positive sign for the retail sector as a whole..
