Next, a prominent UK clothing retailer, maintained its annual profit forecast on Wednesday, following a slight rise in full-price sales of 5.7 per cent in the first quarter, slightly outperforming projections. The figures, seen as a valuable measure of the UK consumer health, indicate that the company still anticipates a pre-tax profit of £960 million (€1.1 billion) for the 2024/25 financial year, marking an increase from 2023/24’s £918 million.
Predictions for an annual increase in full-price sales of 2.5 per cent remain unchanged. Despite its shares climbing 11 per cent since the beginning of the year, Next anticipates sales for the April to June quarter to be modest compared to the first quarter. This is due to last year’s sales benefitting from unexpectedly warm weather from late May to June’s end.
However, Next envisions a temporary 0.3 per cent dip in full-price sales during the second quarter, with recovery to a 2.5 per cent growth in the third and fourth quarters.
– As reported by Reuters © Copyright Thomson Reuters 2024