Next boosts full-year sales guidance

(Sharecast News) - Next boosted its full-year guidance on Wednesday, after third-quarter trading beat internal expectations. The fashion retailer said full-price sales in the three months to 28 October rose 4% year-on-year, £23m ahead of earlier guidance for 2% growth.

Within that, online sales jumped 6.5% but retail eased 0.6%. Next attributed the variable sales performance to changing weather conditions, "rather than any underlying changes in the consumer economy".

As a result, the high street giant increased its full-year guidance for pre-tax profits by £10m, to £885m. It also upped its forecast for full-year sales, which are now expected to be 3.1% stronger at £4.74bn on the assumption full-price sales remain 2% higher for the rest of the year. Next previously forecast full-year sales growth of 2.6%.

A number of fashion retailers saw sales come under pressure in September, after the unseasonably warm weather meant autumn shopping was put on hold.

Full-price sales exclude items that are on sale or included in clearance promotions.