30th Oct 2024 08:46
(Alliance News) - Next PLC on Wednesday raised its full-year outlook for the third time in three months after sales topped expectations.
The Leicester-based clothing and homewares retailer said full price sales in the third-quarter to October 26 rose 7.6% on-year, beating guidance of 5.0%.
"We believe the strong performance was driven by the early arrival of colder weather this year, versus an unusually warm September and early October last year," Next said in a statement.
For the fourth-quarter, it now expects full price sales growth of 3.5%, its outlook lifted from 2.5%.
Full-year pretax profit guidance has been upgraded to GBP1.01 billion from GBP995 million. In September, Next had raised its outlook from GBP980 million, itself increased from GBP960 million in August.
The profit measures excludes items such as the cost of brand amortisation. The new guidance would represent a 9.5% rise on the year prior when the firm reported pretax profit of GBP918 million.
In response, shares in Next rose 1.5% to 10,225.00 pence each in London on Wednesday morning. The wider FTSE 100 was down 0.4%.
Next expects total group sales for the full year of GBP6.27 billion, up 7.4% on last year, and higher than prior guidance of GBP6.23 billion.
This is 2.5% higher than expected growth in full price sales of 4.9%.
"The difference is the result of acquisitions completed during the last year. We acquired 97% of FatFace in October 2023 and increased our equity share in Reiss in September 2023 and June 2024; we now have a 74% shareholding in Reiss," Next explained.
Next will report on Christmas trading on January 7.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.