UK-Based Fashion Retailer, Next PLC Has Raised Its Profit Guidance by £25mn

As a result of the better than expected first half performance, UK-based fashion retailer, Next plc has raised its profit guidance by £25 million.

This was revealed in the latest trading statement for 26 weeks to July 29 released by Next plc today.

Next Brand sales for the first half of the financial year were up 10.7 percent, of which 2.4 percent came from opening of profitable new space. In the same period, Next Retail sales were up 7.5 percent and Next Directory was up 16.2%.

For the full fiscal year to January 2015, Next has revised the lower guidance range for total brand sales from 5.5 percent to 7 percent and has upped the upper range by 0.5 percent to 10 percent.

Next has also revised the PBT lower and upper guidance, in hiking it by £25 million to £775 million and £815 million, respectively.

The lower and upper guidance for EPS has also been raised by 4 percent to 12 and 18 percent, respectively for the full fiscal year 2015.

The statement said, “Sales are currently ahead of the 5.5% - 9.5% full year growth guidance we gave in April. We are therefore raising and narrowing our sales guidance range for the year to 7% - 10%.”

The statement added, “It might appear overly cautious to forecast a full year sales range which is below our current rate of growth. However, last year’s first two quarters were hampered by a particularly cold Spring and Easter which presented a soft comparison for this year.”