Next posts smaller-than-expected drop in Q1 sales, backs FY guidance

(Sharecast News) - Retailer Next backed its full-year guidance on Thursday as it posted a smaller-than-expected drop in first-quarter sales. In the 13 weeks to 29 April, total full-price sales edged down 0.7%, but Next noted that this was moderately ahead of its guidance for a 2% decline.

The company maintained its guidance for full-year pre-tax profit of £795m and earnings per share of 501.9p. It also continues to expect a 1.5% fall in full-year sales.

"Although our first quarter performance moderately exceeded our sales guidance, we believe it is too early in the year to alter our overall sales expectations for either the half or full year," it said.

"Shareholders might wonder why we are so cautious for sales in Q2. As we explained in March, the second quarter last year benefited from unusually warm weather and pent-up demand for events such as weddings, proms etc."