Next upgrades full year guidance following positive Q3

Fashion and home furnishings retailer Next has reported a growth in third quarter sales as it upgrades its full year guidance.

Full price sales in the third quarter (August – October) were up +4.0% on last year, £23m ahead of its guidance which was to be up +2.0%. Online sales rose 6.5% in the period, while store sales declined 0.6%.

“Sales growth has been variable,” Next said. “We believe the volatility in sales performance is a result of changing weather conditions rather than any underlying changes in the consumer economy. 

“In an Autumn season cooler weather is good for sales, warmer than average weather depresses sales. Over time the average performance is a better indicator of underlying consumer demand than any one week.

“Our revised guidance for full year full price sales growth is now +3.1%; this assumes that full price sales for the rest of the year are up +2.0%. Profit generated from the additional sales achieved in the third quarter has added £10m to our full year forecast for profit before tax.

“We are increasing our full year guidance for profit before tax by to £885m.”

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