Next has revised its profit forecast, bringing it closer to achieving £1bn in annual profits.
- The retailer’s full-year guidance was raised by £15m, reaching £995m, an 8.4% increase from last year.
- First half pre-tax profit increased by 7.1%, amounting to £453m in six months ending in July.
- Group sales, including subsidiaries like FatFace and Reiss, rose 8% to £2.9bn.
- Overseas online operations performed notably well, jumping 22.8% to £433m.
Next has once again revised its profit forecast upwards, edging the UK retailer closer to the milestone of £1bn in annual profits. The company has now added £15m to its annual forecast, with expectations set at £995m, an 8.4% increase compared to last year’s profit figures. This projection highlights the retailer’s robust performance in the current economic climate.
The first half of the fiscal year concluded with a 7.1% rise in pre-tax profit, totaling £453m for the six months leading to July. The company attributes this growth to its strategic business maneuvers and effective management, alongside favorable market conditions that have supported its expansion efforts.
Total group sales, encompassing subsidiaries such as FatFace and Reiss, experienced a substantial surge of 8%, reaching £2.9bn. Particularly noteworthy was the performance of the company’s full-price sales, which climbed 4.4% to a total of £2.36bn within the half-year period. This reveals consumer confidence and a strong brand positioning in both domestic and international markets.
During the initial six weeks of the second half, full-price sales exceeded expectations by 6.9%, showcasing the company’s persistent growth momentum. Despite a modest 1.1% rise in UK retail sales linked to tough comparisons with a previous period characterized by unusually warm weather, the company’s international ventures have been thriving.
Indeed, the standout performance in Next’s portfolio was the 22.8% leap in its overseas online operations, which resulted in revenue of £433m. This growth underscores the company’s successful international expansion strategy, and the growing importance of its online presence in capturing a global audience.
In summary, Next’s strategic adjustments and strong international performance push it closer to achieving its £1bn profit goal.
