NEXT Q1 full-price sales dip as online performance weakens

NEXT has maintained its guidance for the full-year, despite a small decline in full-price sales for the first quarter ending 29 April 2023.

The retailer's full price sales dropped 0.7% in the thirteen weeks, which was slightly ahead of its expectation of 2% decline.

Bricks-and-mortar sales were down 0.6%, whilst online sales dropped 1.6%.

Including markdown, sales were up 1.2% on last year. This was driven by "higher clearance sales".

"Although our first quarter performance moderately exceeded our sales guidance, we believe it is too early in the year to alter our overall sales expectations for either the half or full year," said NEXT.

To maintain its first half guidance, the retailer has moderated its sales forecast for the second quarter, which is now planned to be down 5% on last year. Its previous guidance was a drop of 4%.

NEXT also said it would maintain its sales and profit guidance for the full-year, with sales expected to decrease 1.5% and profit before tax expected to total £795 million.

The trading update follows NEXT's plans to onboard Joules to its Total Platform from October 2023. The platform provides a website, warehousing, distribution, contact centre, online advertising and retail services, with the planned services for Joules set to be "significantly wider".