Next boosts forecasts after bumper Christmas sales beat expectations
Next has increased its profit forecast for the past year after posting higher sales than predicted in last two months of 2019.
The high street giant shrugged off the recent malaise affecting retailers to post a 5.2% increase in sales for the period to 28 December, which it said was 1.1% ahead of company forecasts.
Next said it believes its sales for the Christmas period were boosted by a “much colder November than last year and improved stock availability” in both retail stores and online.
Meanwhile, full price sales for the 11 months to the end of December rose by 3.9% as the retailer also predicted sales growth would surpass previous expectations.
It said it expects sales to continue to be 3.9% higher by the end of the financial year, 31 January, up from the previous guidance of 3.6% growth for the year.
Total sales in retail stores slipped 4.6% over the year-to-date, while they were 3.9% lower for the two months to December.
However, Next was buoyed by continued online growth, as digital sales rose 12.1% for the year-to-date, driven by a 15.3% jump in the most recent period.
The company said it now expects to post a full-year profit of around £727 million, raising its previous forecast by £2 million.
Richard Lim, chief executive of Retail Economics, said: “This was an impressive end to the year as their outstanding online business continues to set them apart from the competition.
“The retailer is benefiting from years of investment in their digital proposition, continually evolving their business model to meet shoppers’ heightened expectations.”