NEXT has enjoyed a sales surge that beat its own expectations — crediting the hot weather and pent-up demand in the Middle East.
The retailer lifted its profit outlook again after the stronger-than-expected second quarter.
Next has enjoyed a sales surge that beat its own expectations Credit: Getty
Total full-price sales, which excludes discounts and clearance items, increased by 9.2 per cent over the 13 weeks to August 1, compared with the same period last year.
This was way above the 4 per cent increase the fashion and homeware firm had been forecasting for the period.
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In the UK, sales were up by 2.8 per cent for the quarter, with online shopping driving it, while stores sales decreased.
Meanwhile, online international sales soared by 37 per cent year-on-year, according to the update to investors.
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Next said the “over-performance” was partly due to weather in the UK being hotter than anticipated, as well as spending more on profitable marketing campaigns.
It also pointed to the release of demand in the Middle East and Northern Europe after a weaker start to the year for both regions.
Trading had been affected by the Iran war, with the Middle East region accounting for around 6 per cent of the group’s annual sales.
Chief executive Lord Wolfson had previously said the company planned to raise prices in some overseas countries by as much as 8 per cent to offset the impact.
Next said it was now expecting its full-year pre-tax profit to be £1.24billion — £25million above previous estimates.
That figure would be 7.3 per cent higher than the year before.
It is the second time this financial year that the company has upgraded its outlook for earnings.
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