Financial News

  • 30 July 2014, 5:55

Next Annual Profits Set To Outdo M&S Again

Next has raised its forecast for annual sales and profits as Britain's second largest clothing retailer reported a 10.7% increase in half-year sales.

The Group upped its profit guidance by 25m and now expects to make between 750m and 790m for the full year to January.

Last year the retailer saw pre-tax profits of 695m, overtaking fashion rival M&S.

Representing growth of 11% to 17%, Next's new forecast is set to extend its lead on M&S further in the sector.

It is the second time in three months that the chain has raised its performance expectations, after enjoying two consecutive quarters of strong sales.

Store sales rose by 7.5%, while Next Directory sales were up 16.2%.

Favourable weather and new store openings also helped growth and it now predicts full year sales to rise between 7% to 10%.

The retailer has 500 stores in Britain and Ireland and about 200 stores in more than 40 countries overseas.

Shares in Next rose by around 2% in early Tuesday trading, following the announcement of its better-than-expected results.

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