Next ups profit guidance as online sales surge

Next sales in the second quarter were ahead of expectations, resulting in an increase in the retailer’s profit guidance for the full year.

The fashion retailer reported full price online sales growth of 44 per cent in the 11 weeks to 17 July.

E-commerce sales in the UK jumped by 28 per cent during the same period.

Overall sales in across the 11 weeks rose by 18.6 per cent compared to pre-pandemic levels.

The company’s previous central guidance assumed an increase of 3 per cent.

But Next has now increased full price sales guidance for the rest of the year from 3 per cent to 6 per cent. This represents a £30 million increase, bringing the full year pre-tax profit to £750 million.

The retailer said that for the full year, surplus cash is forecast to be £240 million. It plans to distribute this cash to shareholders through special dividends during the current financial year, the first of which will be paid in September.

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