Renowned British fashion retailer Next has raised its yearly profit guidance!
After witnessing a better-than-expected sales performance in Q2, the retailer has said that it has upped its profit forecast for the year and is set to pay special dividends.
The retailer said there was a stupendous rise of 18.6 per cent in full-price sales in last 11 weeks (to 17 July), compared to what it was during the same period two years back.
The good sales performance during the quarter has also prompted the retailer to agree to repay part of savings it made from the UK Government’s business rates holiday.
The pre-tax profits for the year, Next believes, may now hit £750 million, which is a jump of £30 million from that was previously estimated.
It is important to state here that despite good overall sales performance, business from retailer’s physical stores wasn’t impressive. Bricks-and-mortar sales, notably, were down by 6 per cent in the 11 weeks.
However, online sales more than made up for this, with 44 per cent jump over the same period compared with two years before.
The retailer has attributed the good numbers majorly to a combination of pent-up demand for adult wear and the onset of warm weather at the end of May and June.
Going forward, the retailer has now forecast its sales for the second half of the year (to January 2022) to increase by 6 per cent rather than the previously predicted 3 per cent.