Next upgrades profit outlook again as it benefits from summer spending
Summary
Next, a UK clothing and homeware retailer, has raised its profit forecast for the third time this year due to strong sales in the summer. The company saw a 9% rise in full-price sales in the second quarter and now expects a pre-tax profit of £1.2 billion for the year.Key Facts
- Next upgraded its profit outlook, expecting £1.2 billion pre-tax profit, which is £25 million more than before.
- Full-price sales in Q2 rose 9%, more than twice the initial 4% forecast.
- The company benefited from sunny weather and demand in the Middle East and northern Europe.
- Next owns UK rights to US brands Gap and Victoria’s Secret, and stakes in other labels like Reiss and Joules.
- Its share price has increased by over 20% in the past year and jumped nearly 7% after the upgrade news.
- Many other retailers, like John Lewis, report tough trading conditions due to inflation and lower consumer confidence.
- John Lewis is focusing on improving profit margins and controlling stock instead of just trying to increase sales.
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