Next upgrades profit guidance as second quarter sales soar

Enderby retail giant Next has posted upbeat half year results, upgrading its profit guidance for the year by £10m.

Next says it now expects to make a profit of £860m this year after its second quarter sales accelerated by 5% – some £50m ahead of previous forecasts.

The company said this morning (August 4) that sales in retail stores have recovered and online growth had reverted to its longer term trajectory. Lockdown winners such as home and sportswear retreated, while formalwear made a comeback over the period.

A statement from Next read: “Full price sales in the quarter were +4.7% stronger than we expected. In part, we believe this over-performance has been the result of unusually warm and dry weather in June and July. A marked return to formal dressing, perhaps driven by pent up demand for social events (weddings, etc.), has also played to the strengths of the Next brand.”