NEXT delivers better-than-forecast rise in sales - Indoors Beauty

NEXT delivers better-than-forecast rise in sales

NEXT delivers better-than-forecast rise in sales

High road large NEXT has shrugged off chilly and damp spring climate to notch up a better-than-expected rise in first-quarter sales, however forecasts a weaker second quarter.

The trend, magnificence and homeware retailer posted a 5.7% improve in full-price sales for the 13 weeks to 27 April, forward of its steerage for five% progress.

But NEXT stated that, regardless of the higher-than-forecast sales, it nonetheless expects early summer time buying and selling to slide after a heat climate increase final 12 months.

It saved its sales progress steerage for the primary half at 2.5% and retained its full-year forecasts.

“This implies that our sales in the second quarter shall be down 0.3%,” it stated.

“We anticipate the sales efficiency in the second quarter to be weaker than the primary quarter as a result of final 12 months benefited from very hot climate from late May by way of to the tip of June.”

The group stated it’s on observe for a 4.6% rise in annual underlying pre-tax income to £960 million and full-price sales to elevate by 2.5%.

It comes after NEXT reported a 5% improve in underlying pre-tax income to £918 million for the 12 months to January.

The agency stated on the time that it might be slicing costs for purchasers by 2% due to decrease shopping for prices for clothes and items, with worth tags set to fall by one other 0.5% in the second half of its 2024-25 monetary 12 months.

But it’s anticipated income and sales progress will ease again in the present 12 months, with the group noting issues over the roles market in the 12 months forward as larger wages put companies underneath strain.

Retail analyst James Grzinic, at Jefferies, stated it was a “wholesome begin to the 12 months” for NEXT, in spite of the latest chilly and damp spring climate.

He stated: “The NEXT of previous might have been a larger hostage to the unhelpful climate circumstances which have emerged in the UK in latest weeks.”

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