£1,243 million is Next’s new full-year pre-tax profit target, up £25 million after Q2 full-price sales beat expectations by £70 million.
9.2% Q2 sales growth far outpaced the retailer’s 4.0% forecast, which Next attributed to warmer weather, pent-up demand in the Middle East and Northern Europe, and heavier profitable marketing spend.
£15 million of the upgrade came from stronger full-price sales, while better-than-expected equity investment performance added another £10 million.
5.0% sales growth remains Next’s forecast for the rest of the year, with UK H2 sales still seen rising 2.8% year on year.
The latest increase marks another upgrade for a retailer that has continued to outperform despite a tougher consumer backdrop for much of the sector.