Next sales soar
Next has posted what it calls "significantly better than expected" first quarter sales results. Revenues for the 13 weeks to 30 April rose by 5.2 per cent, which the Enderby-based retailer attributed in part to the warm weather and the royal wedding.
Next said these factors have encouraged customers to bring forward summer purchases, although it is expecting sales to drop off slightly in the second quarter. The company is now predicting full year growth of between 1.5 per cent to 4 per cent, equating to profits of £535m to £585m.
This range is about £15m ahead of the predictions Next gave in March.
In a statement to the London Stock Exchange this morning, Next said: "Despite the strength in recent sales, we remain cautious for the full year given that there has not been a significant change in the underlying economic environment. The combined effects of the public sector deficit cuts and continued inflation in essential commodities are all likely to restrain growth in consumer spending generally.
"In addition the ongoing effects of increases in our own selling prices are also likely to moderate demand for our products. We continue to expect that price increases will be marginally higher in the second half than in the first, at around 8 per cent."
