Next, the fashion retailer, has revealed that the current uptick in sales is the result of warmer weather and ongoing pay rises. As a result, the store increased its forecast for sales and profit for the year, which caused the price of the company’s shares to rise.
Next, which runs about 500 stores, claimed that sales have been “materially better” than anticipated when it provided shareholders with sales projections last month.
Over the last seven weeks, full-price sales have increased by 9.3 per cent, exceeding guidance calling for a 5 per cent drop. The business said that it has therefore outperformed its forecasted full-price sales by about £ 93 million.
As a result, Next reported that it has increased its full-year profit forecasts by £ 40 million to £ 835 million and upgraded its annual sales guidance by £ 137 million. The retailer informed shareholders that the weather played a role in the improvement.
“The onset of warmer weather has made a significant difference to our performance, particularly coming after a wet and cold April,” it said in a statement.
It added that it believes annual pay rises helped trading, after many people received their annual bonuses in April while there was also an increase in the national living wage.
