By Basant El-Faramawy
British fashion retailer Next said total full-price sales rose 8.1% in the 13 weeks to October 31 compared with a year earlier, coming in around £33 million ahead of guidance. The performance was driven by a sharp acceleration in international business that offset a marked slowdown in its home market.
UK sales slow amid warm weather
UK quarterly sales growth eased to 2% from 3.6% in the first half of the financial year. Online sales growth slowed to 4.4% from 7.4%, while retail sales fell 1.7%. Next said the slowdown was "as expected" and highlighted a "volatile" performance amid pressure on household budgets. Unseasonably warm temperatures in September also depressed demand for autumn and winter lines such as jackets and coats, a trend confirmed by the Office for National Statistics.
International business surges 32.2%
International sales jumped 32.2%, far exceeding the 20.5% growth forecast. The company attributed the surge to increased marketing investment driving growth through both direct sales and third-party aggregators.
Full-year outlook raised
Next now expects total group sales growth of 7.6% to £7.54 billion for the year to January, up from a previous forecast of 6.9% to £7.49 billion. Profit before tax is still projected to rise 8.4% to £1.255 billion.
