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Next Shares Jump 7% to Record High After Profit Upgrade
Next has upgraded its profit guidance for the third time this year, citing a hot summer that boosted clothing sales and pent-up demand in the Middle East and northern Europe during the 13 weeks ended on 1 August.
The UK retailer, which owns the rights to Gap and Victoria’s Secret and holds stakes in Reiss and Joules, said full-price sales rose 9% in the second quarter, more than double its initial 4% estimate, driven by alternative brands and online growth while store trading declined. The FTSE 100 company, led by chief executive Simon Wolfson, now expects pre-tax profit of £1.2bn for the year, about £25m higher than previously forecast and a potential 7.3% rise on last year. Shares jumped nearly 7% to a record high on Wednesday.
Garry White of Raymond James said Next could outperform despite a challenging backdrop for consumer spending, adding that management has a habit of under-promising and over-delivering. The update comes as other retailers face tough conditions, with inflation and falling confidence linked to the Iran war. While clothing volumes rose about 2% in June, sales values fell due to discounting, with Next and Marks & Spencer gaining while H&M and Zara declined.
स्रोत: Guardian Business