Red hot profits for fashion firm
NEXT SAYS SALES SMASHED FORECAST
FASHION giant Next raised its profit forecast yesterday as the heatwave fuelled booming sales.
Sunny weather along with more people holidaying at home and pent-up demand has led to roaring trade for the retailer.
Sales in the 11 weeks to mid-July were 18.6 per cent above pre-pandemic levels, smashing expectations which had been set at a cautious three per cent.
Next is now forecasting it will make £750million in annual profits – £30million more than it had predicted.
That’s after repaying £29million in business rates relief it received when stores were allowed to reopen.
In fact, Next is doing so well it is sitting on £240millino of excess cash which it plans to dish out to shareholders in the form of special dividends.
Next’s share price jumped seven per cent yesterday, having soared 60 per cent in the past year.
In an unscheduled trading update, Next said: “We do not expect sales to continue at these exceptionally strong levels but are more optimistic about the outlook than we were three months ago.”
The firm doubled its expected rise in full-price sales this year from three per cent to six per cent. Online sales were up 44 per cent in the three months to midJuly. Store sales were down six per cent, but far better than the 76 per cent slump suffered in the previous quarter.
Business analyist Eleonora Dani said: “It should reassure investors t h a t the business is back on track and set for the year’s second half.”