Full-year pre-tax profit upgraded by £14mn to £1,080mn.
Aarin Chiekrie, equity analyst, Hargreaves Lansdown: “Next continues to deliver for investors, with yet another profit upgrade continuing its hot streak. Sales over its first quarter were well ahead of expectations, nearly double the group’s forecasts. In the UK, both online and in-store sales powered higher at mid-single digits. There had been some weakness from in-store sales of late, but it looks like the better weather has convinced shoppers to head to stores to try before they buy. Next remains cautious about the outlook for future footfall, and in-store growth is expected to return to being broadly flat over the rest of the year. Overseas growth was the standout though, growing at an eyewatering pace of nearly 30%. Given the untapped size of these markets, there’s a big opportunity if Next can execute its expansion plans well.
Much of the overperformance over the period has been put down to warmer weather, which has pulled forward demand for summer-weight clothing. Alongside some tough comparable numbers and Next’s expectations that National Insurance increases will begin to weigh on the economy, sales guidance for the rest of the year has been maintained for now.”
