Next has warned that it expects its sales growth to slow throughout the remainder of the year as pent‐up demand begins to diminish and supply chain problems continue to affect trade.
Despite stock availability improving, the retailer said it still remains a “challenge”, with delays in the international supply chain still compounded by labour shortages in the UK transport and warehousing networks.
However, in a recent trading update for the thirteen weeks to 30 October, the retailer saw full price sales increase 17% compared with pre-pandemic trading.
During the last five weeks of trading, the retailer beat its full price sales forecasted by £14m, which in turn generated £4m in profit.
The group said it anticipates that this will be largely offset by further investment in digital marketing and increased use of inbound air freight and other online distribution costs.
The group now predicts full-year profits will hit £800m, in line with its previous guidance.