Next has raised its profit forecast for the second time this year, projecting stronger-than-expected sales growth ahead of the crucial Christmas trading period. The high street retailer's shares rose significantly on Wednesday following the announcement of upgraded guidance.
The company now expects full price sales growth of around 7% for the quarter ending in January, up from previous guidance of 4.5%. Next reported robust 10.5% total full price sales growth for the 13 weeks to October 25, with UK sales climbing 5.4% and online sales surging 7.8%.
Julie Palmer, partner at Begbies Traynor, described Next as "the gold standard in UK retail." She said the retailer's "winning formula of tight cost control, effective stock management and a well-balanced online and store offer is clearly paying off" at a time when many competitors face financial pressures.
International Expansion Drives Growth
Overseas sales delivered particularly strong performance with 38.8% growth during the quarter. Next also benefited from strategic timing decisions, including moving more surplus stock to its September mid-season sale rather than waiting for the Christmas sale period.
The profit upgrade raises Next's projected pre-tax profit to around £1.135 billion, an increase of approximately £30 million. Palmer noted that Next appears "largely immune" to the rising costs and weak consumer confidence affecting much of the retail sector.
Note: This article was created with Artificial Intelligence (AI).
