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Next has raised its full-year outlook following a strong second quarter of trading, with profit before tax now expected to be £845m, £10m higher than its previous guidance.
It comes as total sales in the second quarter rose by 6.9% against the prior year. Online sales rose by 10% over the period, with retail sales up by 2.2%.
The retailer had previously issued an unscheduled trading update on 19 June after a period of “much better than expected” full price sales, largely driven by the exceptionally warm weather at the time.
Since then however, the group noted full price sales have been up by 3.7%, ahead of its guidance of 0.5%.
In its latest update, the group noted stock levels have also been “well controlled”, and the group went into an end-of-season sale with surplus stock down by 22% against last year.
In addition, it said that clearance rates are ahead of last year, and ahead of its internal forecasts, which has reportedly added around £4m to its profit before tax.
Next said that ultimately this combination of improved clearance rates and £16m of additional full price sales in the last six weeks are the reasons it has upped its guidance to £845m.
