AUS
NZ
UK
CA
USA
IND
NEXT PLC (NXT) has reported a strong performance in the second quarter, with full-price sales increasing by 3.2% compared to the previous year. This growth exceeded the company's expectations by £42 million. The impressive results are particularly notable given the exceptional summer sales last year, which had led the company to forecast a slight decline of 0.3% for Q2.
Solid First Half Performance
For the first half of the year (H1), NEXT achieved a 4.4% increase in full-price sales compared to the previous year, surpassing the company's guidance of a 2.5% increase. Total Group sales, which include markdowns, subsidiaries, and investments, rose by 8.0% in H1. This robust growth reflects the company's strong market position and effective sales strategies.
Upgraded Full-Year Profit Guidance
Based on the strong sales performance and cost savings, NEXT has revised its profit guidance for the full year upward by £20 million to £980 million. This represents a 6.7% increase compared to the previous year. The profit uplift is attributed to additional sales of £11 million and cost savings of £9 million, mainly in logistics.
Full-Year Sales Outlook
NEXT expects total Group sales for the full year to be up 6.0% compared to last year. This forecast is 2.6% higher than the anticipated growth in NEXT Trading full-price sales, which is projected at 3.4%. The difference is primarily due to acquisitions made last year, including a 97% stake in FatFace acquired in October 2023 and an increased equity share in Reiss from 51% to 72% in September 2023.
Upcoming Interim Results Announcement
NEXT PLC is scheduled to announce its interim results for the first half of the year on Thursday, 19 September 2024. The company's performance and strategic acquisitions are expected to be key highlights in the forthcoming report.
