Next forecasts bigger profits after hot weather lifts sales
FTSE 100 retailer, which owns UK rights to US brands Gap and Victoria’s Secret, says prices could rise in autumn Business live – latest updates Next has thanked warmer weather for an “unexpected” boost in sales, leading the clothing retailer to raise its profit forecasts for the fourth time this year. The FTSE 100 company, which owns the UK rights to the US brands Gap and Victoria’s Secret as…
FTSE 100 clothing retailer Next has boosted its profit forecasts for the fourth time this year, crediting warmer weather for an "unexpected" sales surge. The company owns the UK rights to US brands Gap and Victoria's Secret and has reported a 9% increase in total sales over the past six months, with pre-tax profits for the half-year rising by 11% to £566m.
Next raised its full-year profit forecast by £12m to £1.26bn, marking the fourth forecast increase this year. The retailer attributed its success to "unusually warm summers" in the UK and the completion of the year's initial goals, which included cost-cutting measures, particularly in warehouses. While Next acknowledged rising inflation, higher mortgage interest costs, and a weak employment market as primary concerns, the company remains optimistic about its prospects.
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