Next sees strong sales despite cost-of-living concerns

Fashion retailer Next has raised its profit target after stronger than expected Summer sales, business reporter Michael Crossland reports.

Transcript

00:00 Hello I'm Michael Crossland, Business Report with The Orchard Post and we have today news

00:04 from fashion retail in Next which, despite cost of living concerns, has announced stronger

00:10 than expected summer sales. The chain has upgraded its profit target after revealing

00:15 it was helped by improved full price trading and a strong end of season sale in the late

00:21 quarter. This follows on from Next's announcement in June where it said that exceptionally warm

00:25 weather had also led to better than expected sales. The company has now reported that full

00:31 price sales increased by 6.9% for the 13 weeks to July 29th and that increase is compared

00:38 to the same period for last year. It also reported that its end of season sale had gone

00:42 well and said that it had cleared more stock than expected. As a result, Next increased

00:48 its pre-tax profit guidance for the current financial year up to £845 million which is

00:54 an increase of £10 million. Despite the improved performance however, Next has held its sales

01:00 forecast at 0.5% growth for the second half of the financial year. The company said this

01:06 would put it on track for a 1.8% increase for the year as a whole. I'm Michael Crossland,

01:12 reporting for The Orchard Post.

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