Next sales buoyed by unusually warm spring weather in UK
Sales at Next have beaten expectations after unusually warm UK weather boosted the fashion and homeware retailer's summer clothing range.
The company, which recently surpassed £1bn in profit for the first time, continued its winning streak on Thursday as it reported that full-price sales rose by 11.4% in the 13 weeks to 26 April, compared with the same period last year. Revenue was £55m higher than initially expected.
It said warmer weather had 'benefited the sale of summer-weight clothing'.
Shares in Next, a member of the blue-chip FTSE 100 index, have risen by more than 28% so far this year, thanks to a huge expansion overseas and its sales of other brands.
The company expects annual pre-tax profits to end its current financial year at £1.08bn, representing a 6% rise compared with last year. While the first quarter had been stronger than expected, the company said this 'over-performance' might have been pulled forward from the second quarter.
The retailer, which is led by the Conservative peer Simon Wolfson, has not reported any cyber incidents that have hit other big players in the British retail sector, including its rival Marks & Spencer, as well as the luxury department store Harrods and the Co-op.
Analysts at Jefferies investment bank said Next could take some market share while online shopping at M&S remained disrupted. Next's online sales in the UK rose by 9% in its first quarter.
The retailer was created in 1982 when the men's tailoring brand Hepworths bought the womenswear chain Kendall & Sons.
Next is one of the biggest online fashion businesses in the world, having bought stakes in brands such as Gap, Victoria's Secret and FatFace. Next is only the fourth British retailer to pass the £1bn profit milestone. skip past newsletter promotion
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The retailer predicts slower revenue growth in the second half of its financial year, especially because sales in the autumn and winter seasons last year were strong. It forecasts 6% total sales growth for the full year.
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