Next has increased its full-year profit guidance after reporting a rise in sales during its second quarter.

The fashion giant said it now expects pre-tax profit to come in at £725m, £10m more than its previous forecast and 0.3% ahead of last year.

It said full-price sales across the year are now anticipated to grow 3.6%, compared to its previous expectation of 1.7%.

Next upped its guidance after registering a 4% increase in full-price sales in the period to July 31. Total sales, including markdowns, improved 3.8%.

Sales growth was spurred by its online business, where revenues rose 12% during the second quarter.

By contrast, store sales fell 4.2%.

Across the wider half-year period, online sales climbed 11.9%, while store sales dropped 3.9%.

Next said: “The increase in our full-price sales guidance is £70m and, after accounting for associated costs, is expected to add £20m to profit.

“Lower clearance rates to date, along with anticipated lower clearance rates in the second half, are forecast to cost an additional £10m.

“As a result, we are increasing our guidance for full-year group profit by £10m to £725m, marginally up on last year.”

Next is due to reveal its interim results on September 19.

Topics