Next details better-than-expected H1 trading, raises FY profit guidance.
Retailer Next delivered a materially better‑than‑expected first half on Thursday, prompting a £12m upgrade to its full‑year profit guidance and reinforcing confidence in its margin trajectory.
Source: Sharecast
Next said full‑price sales rose 7.7% in the six months ended 1 August, taking total sales to £3.28bn, while total sales including markdowns climbed 8.9% to £3.54bn. Pre‑tax profits climbed 10.5% to £569m, with net margins improving 0.3ppt to 16.1%, helped by higher bought‑in gross margins, warehousing efficiencies and profitable digital marketing.
The FTSE 100-listed firm said the half was "much better than we originally anticipated", with international growth remaining the standout as direct‑to‑consumer sales rose 24% despite Middle East disruption, and WOBL brands delivering exceptional growth - up 32% online in the UK and 82% overseas.
UK Next‑brand sales were £7m lower year‑on‑year, as expected, reflecting the reversal of last year’s competitor‑related gains and the impact of strong WOBL and third‑party growth.
Next upgraded its full‑year profit guidance to £1.255bn, up from £1.243bn previously, reflecting slightly stronger sales expectations and additional cost savings, mainly in warehousing. Management added that the firm's progress continued to come from decentralised initiatives across product, international, infrastructure and cost control.
As of 0830 BST, Next shares were up 2.09% at 14,865p.
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