Table of Contents
Next has once again broken the pessimism in the retail sector by forecasting higher profits following excellent summer sales.
Sales rose 3.2 percent between April and June compared with last year, an unexpected boost for the fashion retailer.
The chain had estimated sales would fall 0.3 percent after a sunnier summer last year.
Summer boost: Next sales rose 3.2% between April and June compared with last year, in an unexpected boost for the fashion retailer
Competitors such as H&M have admitted that rainy weather this summer has slowed their Christmas fashion sales.
Next now has a majority stake in Reiss and that has helped defy the misery felt elsewhere.
It now expects profits to hit £980m this year, up £20m from the £960m forecast in the spring.
Tesco, Marks & Spencer and B&Q owner Kingfisher are the only other UK public retailers to have made £1bn or thereabouts in profits in a single year.
Clive Black, equity research analyst at Shore Capital, said the sales surge was “a very pleasant surprise for us.”
The update cements Next as one of Britain’s most trusted retailers, while boss Simon Wolfson has been praised for his leadership.
With inflation receding and the economy recovering, Wolfson said in March: “We seem to be entering a new era.”
Next shares rose 8.3 per cent, or 756 pence, to 9,830 pence yesterday and are up 40 per cent in the past year.
DIY INVESTMENT PLATFORMS
AJ Bell
AJ Bell
Easy investment and ready-to-use portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free investment ideas and fund trading
interactive investor
interactive investor
Flat rate investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading commissions
Trade 212
Trade 212
Free treatment and no commissions per account
Affiliate links: If you purchase a product This is Money may earn a commission. These offers are chosen by our editorial team as we believe they are worth highlighting. This does not affect our editorial independence.