4th May 2023 09:28
(Alliance News) - Next PLC on Thursday said its first quarter sales fell year-on-year but topped guidance, though it lowered its second quarter outlook slightly.
It maintained annual guidance, however. Shares were up 2.7% at 6,688.00 pence each, among the best FTSE 100 performers on Thursday morning in London.
The clothing and homewares retailer said in the 13 weeks to April 29, full price sales fell 0.7% year-on-year, which was ahead of guidance of a 2% decline.
Online sales were down 1.6% year-on-year, while retail sales fell 0.6%.
Believing it to be "too early" to raise its sales guidance for the half or the full year, Next moderated its sales forecasts for the second quarter to a year-on-year fall of 5%, compared to the 4% decline it previously forecast.
"This adjustment seems reasonable, as some of the first quarter's success, particularly in holiday clothing sales leading up to Easter, might have been pulled forward from the second quarter," Next explained.
The second quarter of the previous year also had benefitted from pent-up demand for events such as weddings and proms, Next said.
Looking ahead, It reiterated its full-year outlook, expecting pretax profit to fall 8.7% to GBP795 million and earnings per share to fall 13% to 501.9 pence. For financial 2022, pretax profit was GBP869.3 million. Earnings per share amounted to 573.4 pence.
Next still expects annual sales to be down 1.5% from the previous year. Next guided for surplus cash of GBP220 million, some of which it intends to return to shareholders, some to invest in platform partners.
By Xindi Wei, Alliance News reporter
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