Next hikes profit outlook after hot weather boosted summer sales

business
Next Hikes Profit Outlook After Hot Weather Boosted Summer Sales Next Hikes Profit Outlook After Hot Weather Boosted Summer Sales
The group’s second-quarter sales performance beat its expectations by £50 million (€59.8 million). Photo: PA Images
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Anna Wise, PA Business Reporter

Fashion chain Next has upped its annual profit outlook after seeing full-price sales lift 5 per cent in the past three months as the spell of hot weather boosted demand for summer clothing.

The group’s second-quarter sales performance exceeded expectations by £50 million (€59.8 million), and the chain has lifted its full-year profit guidance by £10 million (€12 million) to £860 million (€1.03 billion).

Total sales jumped 5 per cent in the three months to July 30th compared to last year, and leapt 23.8 per cent higher versus to the same period in 2019 before the pandemic struck.

In-store retail has had a “renaissance” while growth in online shopping ground to a halt, the retailer said.

The post-pandemic resurgence in retail also boosted sales of formal wear as demand for social events spiked, while lockdown winners like home and sportswear dwindled.

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But Next expects the unusually warm weather to subside and the impact of soaring inflation on consumer spending to worsen, dampening sales in the second half of the year.

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