- Next’s reported full-price sales grew 5.7% for the 13 weeks ending April 27.
- The fashion brand’s trade was boosted by online revenue growth of 8.8%.
Next has reiterated its full-year guidance after the retailer’s sales beat forecasts in the first quarter.
The fashion and home goods brand reported that full-price sales rose 5.7 percent for the 13 weeks ending April 27, compared with a forecast increase of 5 percent.
Trading was boosted by online revenue growth of 8.8 percent, which offset the decline in in-store orders, as well as a 6.4 percent increase in financial interest income.
Strong performance: Next’s reported full-price sales rose 5.7% for the 13 weeks ending April 27, compared with an anticipated 5% increase.
As a result, the company predicts full price turnover will rise 2.5 per cent to £4.9bn this financial year, supported by strong performance over the final six months of the period.
It did forecast a slight drop in second-quarter revenue, having benefited from “particularly warm weather” in late May and June last year.
It predicted total turnover would rise 6 percent, partly reflecting stakes Next bought in FatFace and luxury fashion brand Reiss Group.
Next recently acquired FatFace in a £115 million deal and increased its stake in Reiss – whose fans include the Duchess of Cambridge – from just over half to 72 per cent.
Despite the current weakened macroeconomic environment, Next projects a solid growth trajectory.
The FTSE 100 firm expects its annual pre-tax profits to rise 4.6 per cent from £918 million last year to a record £960 million in 2025.
In March, Next said the profit gains would largely come from a 2.5 percent increase in full-price sales, more normalized employee incentives and profits from its Total Platform service.
Total Platform gives third-party brands access to the retailer’s marketing, logistics, warehousing and other online infrastructure.
Brands using the service include Victoria’s Secret, JoJo Maman Bebe, Joules, Made.com, Laura Ashley and US clothing retailer Gap.
John Moore, senior investment manager at RBC Brewin Dolphin, said: ‘The company is in a sweet spot where it is carefully growing its branded product proposition while continuing to improve its core business.
‘With relatively modest competition and declining inflation, the tailwinds for the company appear to be favorable.
“British weather seems to be the only thing that could stop the next one – spring still hasn’t arrived in 2024.”
Next actions They were down 0.7 per cent at £89.46 on Wednesday morning, but are still up around 36 per cent in the last 12 months.
The London-based firm, founded in Leeds 160 years ago, is the UK’s largest clothing seller by sales and has enjoyed significant expansion since Covid-related restrictions were eased as e-commerce brands such as Asos and Boohoo They had problems.
