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Next PLC (LSE:NXT) is anticipated to potentially revise its sales guidance upward when it reports its interim results on 19 September. The retailer, which had previously announced a 4.4% increase in sales for the first half of the year in August, has maintained its sales guidance for the remainder of the year, leading to speculation about a possible adjustment.
Deutsche Bank analysts have noted that with an additional six weeks of trading since the last update, Next may be in a stronger position to enhance its previously set 2.5% brand sales guidance for the second half of the year. The company’s pre-tax profit guidance was recently raised from £960 million to £980 million, though it remains below analysts' expectations of £1 billion.
Hargreaves Lansdown’s Aarin Chiekrie observed that the growing speculation about a potential upgrade stems from Next's recent trend of delivering favorable updates. Despite this optimism, investors are expected to focus on the outlook for in-store sales, which have been declining. Chiekrie highlighted that the online channel is still viewed as the primary growth driver, and the company’s international expansion, still in its early stages, offers substantial potential if the strategy is executed effectively.
Deutsche Bank forecasts a pre-tax profit of £455 million for the half-year, with retail sales projected at £863 million and online revenue anticipated to reach £1.63 billion.
