Next PLC (LSE:NXT) will release first-half results on Thursday 18 September and, in the normal order of things, chief executive Lord Wolfson is likely to raise guidance.
Even though the clothing retailer is well known to rarely provide guidance it cannot beat, this will be the fourth upgrade to the outlook this year.
Shares in the retailer hit a record high of 13,100p in June before slipping around 9% since, even as management relaunched the buyback programme and hinted at the possibility of a special dividend in early next year.
In July, Next lifted its forecast for full-year full-price sales growth to 7.5% and pre-tax profit to £1.105 billion.
The upgrade marked Next’s third profit guidance increase this year.
Analysts expect the interim dividend to increase to 80p per share, up from 75p, as cash returns will be closely watched.
After pausing its buyback programme in the summer, management resumed purchases alongside July’s profit upgrade and the subsequent share price pullback, which allowed it to meet its internal hurdle of an 8% equivalent rate of return.
Analysts at Interactive Investor commented: “The Next naysayers who eschew the UK retail sector have been dealt blow after blow, as the group continues to fire on all cylinders."
However, Next's first half, they noted, was helped by warmer weather and disruption at rival Marks & Spencer, so stronger comparatives in the second half may limit momentum.
The FTSE 100 group has leaned towards full-price sales over discounting, with customers increasingly buying fewer but more expensive items. Analysts say this strategy has expanded the retailer’s appeal and positioned it higher up the price chain.