Next has increased profit guidance as sales exceed expectations despite bad weather

The fashion giant reported a 3.2% increase in full-price sales, exceeding expectations by £42m in the second quarter ending July this year.

The retailer said it had forecast sales to fall 0.3% in the period to take into account bad weather conditions compared with an “exceptional summer last year”.

In the first half of the year ending July, full price sales were up 4.4% versus last year, while total group sales including markdown, subsidiaries and investments increased by 8% in the period.

Next maintained its guidance on full-price sales but said it now expects full-year profit before tax to be up £20m to £980m, up 6.7% compared with last year as it expects additional sales of £11m and cost savings of £9m, mainly in logistics.

In a statement, Next said: “The difference is the result of acquisitions completed during last year. 

“We acquired 97% of FatFace in October 2023 and increased our equity share in Reiss from 51% to 72% in September 2023.”