Next has upgraded its profit before tax guidance for the full year, after warmer weather led to a “better than expected” first quarter of trading.
In the 13 weeks to April 26, Next reported that full price sales soared 11.4% versus the previous year—£55m ahead of its forecasted sales numbers for the period.
The retail giant said that, after accounting for the £55m in additional sales in the quarter, it was now increasing its group profit before tax guidance for the year by £14m to £1.08bn.
Broken down by division, Next said that performance in both the UK and overseas was better than it had anticipated, with sales in stores “much stronger than expected”.
Total online sales for the period were up 8.9%, while total UK sales were up 7.3%. Online international sales soared 29.6%, while total full price sales were up 11.4%.
While Next celebrated its better than expected first quarter, it warned that it has not revised expectations for the rest of the year, “because we think some of the overachievement in Q1 will have pulled forward sales of summer-weight products from Q2”.
It also reiterated that it was “more cautious about sales in the second half because the comparative numbers (in autumn/winter 2024) were much stronger”.
Next also said it expects the “full effects of this April’s national insurance increases will begin to filter through to the wider economy in the second half”.
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