Next has revised its profit forecast for the year, attributing this to a boost in sales during the third quarter.
- The company’s sales rose by 7.6% for the 13 weeks ending 26 October, exceeding expectations by 2.6%.
- The early cold weather this year has been cited as a key factor in this sales growth.
- Increases in both UK sales and online revenues significantly contributed to this performance.
- Next’s strategic stake in Rockett St George is expected to expand its product range.
In its latest financial update, Next reported a notable increase in its profit guidance for the full year. This revision follows a significant 7.6% uplift in sales for the third quarter, compared to the same period last year, outperforming its own guidance by 2.6%. The company attributed this strong performance largely to the early onset of cold weather, which contrasts with the unusually warm conditions experienced during September and early October of the previous year.
The retail giant witnessed total UK sales climb by 5.8% over the period, with online revenues showing an even more robust growth of nearly 8%. This surge in sales is reflective of shifting consumer behaviour, likely influenced by the colder than expected weather, which prompted greater demand for seasonal clothing.
In light of these robust quarterly results, Next has adjusted its full-year profit guidance upwards from £995 million to £1,005 million. Additionally, the company has revised its sales forecast for the year to reach £6.27 billion, marking a 7.4% increase from last year. The company’s projection for fourth-quarter sales growth was also updated to a 3.5% rise, up from an initial 1% estimate.
Beyond these positive financial forecasts, Next’s recent acquisition of a 16% stake in homeware and lifestyle brand Rockett St George is expected to facilitate an expansion in its product range and customer base. This strategic investment follows a series of successful collaborations between the two brands, underscoring Next’s commitment to diversifying its offerings and enhancing market reach.
Next’s strategic adaptations, coupled with favourable weather conditions, have yielded significant financial benefits, setting a positive outlook for the year.
