Next PLC (LSE:NXT) could be on course to upgrade sales guidance once again when the retailer reports interim results next Thursday, 19 September.
Having already reported a 4.4% uptick in sales over the first half in August, unchanged guidance for the rest of the year at the time has prompted speculation of a hike soon.
“They will have seen trading for another six weeks” since the last update, Deutsche Bank analysts noted, “ which may make them more confident to upgrade the 2.5% brand sales guidance for the second half”.
That said, this could come further into the year, analysts noted, after pre-tax profit guidance was nudged up from £960 million to £980 million previously, but remained below forecasts for £1 billion.
Hargreaves Lansdown’s Aarin Chiekrie added the mounting speculation for another upgrade had come after Next got “into the habit of delivering positive news lately”.
Despite all the positivity, he said investors would be keen to hear any views on the outlook for in-store sales, which have been in decline recently.
“Analysts continue to see the online channel as the main growth driver,” Chiekrie added, “expansion overseas is still in the early stages and there’s a lot of room left to run if Next can execute its strategy well”.
Deutsche forecast pre-tax profit to sit at £455 million for the half-year, on sales of £2.7 billion.