Next plc has confirmed speculation and delivered an upgrade to its yearly sales forecasts after having a quality first half.
The online and retail fashion group posted a 7.1% yearly increase in profit before tax to £452 million, with total group sales rising by 8% to £2.95 billion. Full-price sales increased by 4.4%.
Net retail margins did experience a slight dip from 9.5% to 9.4% due to wage inflation, though this was offset by online net margins increasing from 14% to 16%.
Online sales drove sales in the first half, with an increase of 7% year-on-year, while overseas business saw a notable 22.8% growth.
Building on this strong first half, Next increased its full-year pre-tax profit guidance to £995 million, an 8.4% increase compared to the prior year.
This marks a £15 million upgrade from previous estimates.
Full-price sales are now expected to rise by 4% for the full year, while total group sales are projected to grow by 6.6%.
Next attributed these results to improved stock availability and growth through third-party aggregators.