Next PLC (LSE:NXT) said second-quarter sales beat previous guidance as the retailer raised full-year profit expectations.
In the three months to July 30, full price sales were up 5%, £50mln ahead of previous guidance and it maintained its full price sales guidance for the second half at 1.0%.
Consequentially, the FTSE 100 company now expects full-year profit to be at £860mln, £10mln higher than previous expectations and up 4.5% compared to 2021.
Next highlighted that the year so far experienced a “sharp reversal” in last year’s lockdown trends, according to a statement.
Online growth for the retailer in the second quarter grew 0.2% versus 2021, reverting back to its longer-term trajectory targets, while the re-opening of stores saw sales grow by 12%, although in the first three months of the year that figure ballooned to over 280%.
However, online sales continue to be significantly ahead of 2019, the last pre-pandemic trading year, up by 44% in the second quarter. Current online performance growth is generally in line with the pre-pandemic levels.
There was also a reversal in what consumers were buying, with sales for ‘lockdown winners’ like home and sportswear shrinking, while formalwear clothing was boosted by the return to offices and events.
Next also said online return rates and surplus stock reverted back to pre-lockdown levels.
The group is expected to release its half-year results on 29 Septem