British clothing retailer Next sales up 4% in Q2 2019

A closer examination of the quarter’s performance by month shows that full price sales during May and June combined were up 3 per cent; July was particularly strong and up 6.8 per cent on last year. However, some of July’s over-performance in full price sales came as a result of lower markdown sales in the company’s end-of-season sale, according to a press release by Next Plc.

Following better than anticipated sales performance in the second quarter, the company has increased its full price sales guidance for the second half of 2019 from 1.7 per cent to 3 per cent in line with its full price sales growth in May and June. The increase in full price sales guidance is £70 million and, after accounting for associated costs, is expected to add £20 million to profit. Lower clearance rates to date, along with anticipated lower clearance rates in the second half, are forecast to cost an additional £10 million. As a result, Next Plc has increased its guidance for full year group profit by £10 million to £725 million, marginally up on last year. (PC)

Fibre2Fashion News Desk – India