UK retailer Next's full price sales rise 6.9% in Q2 FY24

03 Aug '23

2 min read

Pic: Konmac / Shutterstock.com

Insights

Next has seen Q2 FY24 full price sales rise by 6.9 per cent, exceeding expectations, mainly driven by favourable weather.
The company also reported higher clearance rates in its end-of-season sale.
Next expects a modest 0.5 per cent sales growth for H2 FY24.
Improved sales and clearance rates have prompted a profit guidance revision to £845 million.

UK retail giant, Next Plc, has reported a 6.9 per cent rise in full price sales in the second quarter (Q2) of fiscal 2024 (FY24), exceeding its expectations. An unscheduled trading statement was issued on June 19 following a period of better-than-expected full price sales, largely driven by exceptionally warm weather. Since then, sales have further increased by 3.7 per cent on last year, significantly ahead of the company's previous guidance of 0.5 per cent.

In addition, Next Plc's end-of-season sale has seen higher-than-anticipated clearance rates, reflecting a positive consumer response to the brand's offerings, the company said in a press release.

Despite this impressive performance, the retailer is maintaining a cautiously optimistic stance. It projects full price sales to increase by just 0.5 per cent compared to the previous year in the second half of fiscal 2024, translating into a 1.8 per cent rise in full price sales for the full fiscal.

Boosted by an additional £16 million in full price sales in the last six weeks and improved clearance rates from their summer sale, the company is now set to generate £10 million more profit than previously anticipated. In light of this, Next Plc has revised its profit guidance upwards, expecting it to reach £845 million.

Fibre2Fashion News Desk (DP)

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