Fashion retailer Next crushes sales forecast, improves profit forecast


UK fashion retailer Next said it has far exceeded expectations for full-price sales, with a 19% increase in the past 11 weeks compared to two years ago, and as a result, it increased his profit forecast.

This included a 21% increase in full-price sales from its Republic stores.

The company, which had assumed sales would increase by around 3%, increased its central pre-tax profit target from £ 30million to £ 750million. This reduced the surge in sales to a combination of pent-up demand for adult clothing, the onset of warm weather in late May and early June, and increased spending resulting from fewer overseas vacations and savings from home. consumers acquired during the lockdown.

The company, which is used to beating its forecasts, said it expected second-half sales through January 2022 to increase 6% instead of 3%. The increase in profit forecasts would have been higher had it not decided to repay £ 29million of trade tariff relief, taking into account the time it was open for its stores. He said he made the decision after consulting with major shareholders. Next, which has a well-established online operation and a network of 500 stores in Britain and Ireland, said its cash surplus for the year is expected to be £ 240million, that it planned to pay to shareholders via special dividends, the first of which would be paid in September.

– Reuters


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