NEXT fashioned another profit upgrade today, offering hope for the wider high street and reminding the City that it is one of the best run businesses in the UK.
The clothes giant led by Simon Wolfson said full price sales between May and July are up 6.9% on a year ago. While that speaks to resilient consumer confidence it will not encourage economists looking for signs that inflation is easing.
The rising sales allowed Next to up full year profit guidance by £10 million to £845 million.
Charlie Huggins, manager of the ‘Quality Shares Portfolio’ at Wealth Club, said:
"Next pulled a rabbit out of the hat on 19 June when it said sales had been much better than expected in the first seven weeks of the year. Since then sales growth has remained robust with Next ending the first half strongly. The group’s end-of-season sale also went better than expected which has led to a modest increase to full year profit guidance.”
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said:
“Next has got into a habit of beating market expectations on the upside lately, and today’s second-quarter trading statement continued the hot streak. End-of-season sales were ahead of group expectations in the period, adding to the positive tailwinds that Next seems to be catching lately. The group still has a strong high street presence too, with sales here also heading in the right direction. Next’s certainly weathering the storm of economic uncertainty admirably, and looks well-placed to prosper further when the cycle turns.“
Next shares rose 24p to 6876p which leaves the business valued at £8.7 billion.
