Clothing retailer Next has maintained its annual profit forecast after posting first-quarter sales slightly ahead of its own guidance and said it would pay another special dividend.
The group trades from over 500 stores in Britain and Ireland and almost 200 stores in other countries as well as the Directory catalogue and internet business.
It said today that full price sales rose 3.2% in the 13 weeks to April 25. That was ahead of company guidance for the first half of flat to up 3%.
Next said sales in the first quarter were flattered by the earlier launch of its summer “New-In” brochure, which helpfully coincided with much warmer weather.
It estimated this timing effect increased its reported number by around 0.6%.
Full price retail sales were up 0.5%, while Directory sales were up 7%. The firm said total sales were up 4.1%, reflecting a better winter end-of-season sale and a larger mid-season sale in Directory.
Last month Next cut its sales guidance for 2015-16, highlighting weaker collections and tough comparative numbers in the spring and summer.
That guidance was maintained today and the company said it expected total full price sales of 1.5-5.5% in the year to the end of January 2016.
Its pre-tax profit is forecast at £785-835m, which would represent growth of 0.4-6.7%.
During the first quarter Next's share price remained above its buyback price limit of £68.27, so it did not use surplus cash to retire any shares in the period. The firm will therefore pay a further special dividend of 60 pence per share on August 3.
