Clothing retailer Next has raised its full year profit outlook after strong online trading overseas drove a better than expected second quarter sales performance.
With more than 800 stores in the UK and Ireland and nearly 8 million online customers, Next is often considered a useful gauge of how consumers are faring.
Next said full price sales in its second quarter to July 27 rose 3.2% - ahead of guidance of a fall of 0.3% and versus growth of 5.7% in the first quarter.
The group had previously flagged that it expected sales to edge lower in the second quarter because last year it benefited from particularly warm weather from late May to the end of June which boosted sales. In contrast the weather in the same period this year has generally been poor.
Next said its full price sales in the UK, online and stores combined, were only slightly ahead of expectations, up 0.4%. However, it said its overseas sales online were much better than expected, up 21.9%.
The group said it was now forecasting profit before tax of £980m in its full 2024/25 year, up from guidance of £960m previously and 6.7% ahead of the £918m made in 2023/24.
Next kept its forecast for full price sales in the second half to be up 2.5%.
The group's performance looks much stronger than the wider market. Its shares are up 30% over the last year.
Official data published on July 19 showed overall UK retail sales volumes fell by more than expected in June, after unseasonably cooler weather put off shoppers.
Industry data earlier this week showed retailers suffered another bad month in July due to poor weather and expect further weakness in August.
