Next raises full price sales guidance

Next brand full price sales in the first half were up 8.8 percent versus 2019. For the rest of the year, the company is forecasting full price sales to increase by 10 percent which is more in line with the sales growth witnessed in July and September.

Next sales rebound in H1
The company said in a statement that full price sales were down in February and March, when most of the retail stores were closed for ten weeks but recovered strongly once the majority of the company’s stores reopened on 12 April, boosted by pent-up demand in April and very warm weather in June.

Full price sales in the second half have also started strongly. The company believes that August and, to some degree, the beginning of September were boosted by more people taking holidays in the UK.

Next brand total sales including markdown and total platform sales were up 8.4 percent. On a statutory basis, total group sales were up 5.2 percent. Pre-tax profit was 347 million pounds, which was up 5.9 percent versus two years ago.

Next online sales jump in the first half
Full price Online sales in the first eight weeks of the second half were up 43 percent versus two years ago and are forecast to be up 32 percent for the rest of the year. This would result in full price sales being up 44 percent for the full year.

Based on this forecast, Next estimates that online profit will be around 590 million pounds, with an operating margin of around 20 percent versus 19.1 percent two years ago.

In the first half, Label full price sales were up 70 percent versus two years ago, adding 139 million pounds to the turnover of the group.

Next updates sales forecast
For the second half to date, Next expects to report full price sales growth of 20 percent, second half sales growth of 12.4 percent and full year sales increase of 10.7 percent with the rest of the year sales increase of 10 percent.

Online sales are expected to increase 34 percent in the second half period and 44 percent for the full year, while retail sales are expected to decline 11 percent in the second half and 25 percent for the full year.

Group profit before tax is expected to reach 800 million pounds against previous forecast of 764 million pounds, up 6.9 percent versus 2019-2020. Earnings per share are expected to be 516.9 pence, up 9.4 percent against 2019-20.