Next maintains guidance despite better than expected sales

Next has maintained its profit guidance for the full-year despite seeing better than expected sales figures for the first quarter.

The company stated that its profit before tax is forecast to be £795m and earnings per share is expected to be 501.9p.

Full price sales dropped 0.7% for the 13 weeks to 29 April but this was better than the 2% drop the retailer expected.

Full price online sales dropped 1.6% while in store sales dropped 0.6% contributing to the overall decline.

The company has moderated its forecast for Q2, with sales now expected to drop 5% instead of the 4% which was previously predicted, as a way to sustain its first half forecast.

Next stated: “Although our first quarter performance moderately exceeded our sales guidance, we believe it is too early in the year to alter our overall sales expectations for either the half or full year.

“Shareholders might wonder why we are so cautious for sales in Q2. As we explained in March, the second quarter last year benefited from unusually warm weather and pent-up demand for events such as weddings, proms etc.”