British fashion retailer Next has raised its first-half outlook. This came after it reported a smaller than expected fall in first-quarter underlying sales at its retail stores.
Next, the UK's second-largest clothing retailer by sales value, said like-for-like sales in stores unaffected by new openings fell 2.3% in the 14 weeks to May 2. It forecast that first-half like-for-like sales would fall by between 4% and 7%.
This compares with the company's previous first-half guidance, which forecast a like-for-like sales fall of between 6% and 9% at Next Retail.
'As a result of the better than expected sales to date we have added £15m to our internal profit forecasts,' the company said in a statement.
The company put the solid first-quarter performance down to the good weather and fewer people travelling overseas during the Easter holiday, because of the weakness of sterling. But Next said it expected the second quarter to be weaker than the first due to a tougher comparison with the same period a year earlier.
Sales at Next's catalogue and online business Next Directory rose 1.6%, with the company predicting first-half sales were likely to be flat. Total group sales rose 1.2%.
