Next beats the UK heat

UK retailer raises full-year profit outlook

LONDON: Next Plc raised its sales and profit outlook for the year, a rare bright spot in a season of woe for UK retailers struggling against soaring summer temperatures and the threat of Amazon.com Inc.

The apparel chain had warned in August that a boost to summer sales in July would wane later in the summer. Instead, the company now said business remained strong.

The rosier outlook stands out as some of Next’s competition languished in the summer heat. Shares of suit retailer Moss Bros Group Plc plunged last week after it reported output at US shale fields.

Earlier this year, Unipec had shunned US crude purchases due to the threat of oil being included profits will be materially lower than expected, citing the unusually warm weather, while department-store chain House of Fraser was sold to billionaire Mike Ashley’s Sports Direct International Plc after filing for insolvency proceedings.

Next said it now expects £727mil pounds of pretax profit this year, up by £10mil. The company also said it expects full-year, full-price sales growth to be ahead of previous estimates.

The retailer said it’s preparing for the possibility of the UK leaving the European Union without an agree- among US imports that will incur tariffs in China. The trader later resumed some purchases after crude was removed from the list by ment, saying this would pose “significant challenges” but would not create a material threat to the company’s operations.

“Departure from the EU without a free trade arrangement and managed transition period is not our preferred outcome,” Next said in a statement.

“However, Next is well prepared for this eventuality and we have all the administrative, legal and IT framework in place to ensure that we are able to carry on running the business as we do now.” — Bloomberg