Next increases profit guidance after rise in sales

Next has seen sales increase over the second quarter by almost seven per cent compared to the same period of 2022.

As a result, Next has increased its full year pre-tax profit guidance by £10 million to £845 million.

In the 13 weeks to the end of July, online sales rose by ten per cent compared to last year, while in-store sales increased by around two per cent.

In a trading update, the fashion retailer said that full price sales had increased by around four per cent.

The company added that it had taken measures to control stock levels going into its end-of-season sales, with surplus stock decreasing by around 22 per cent compared to the previous year.

Next said that clearance rates were higher than predicted, adding around £4 million to profit before tax.

In June, news emerged that Next was reportedly planning to sell British fashion brand and retail store chain Reiss at a valuation of over £500 million.

Next took a 25 per cent stake in Reiss from private equity firm Warburg Pincus in 2021 before choosing to increase it to 51 per cent and become the fashion brand’s majority stakeholder last year under pre-agreed terms.

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