Next ups its full-year guidance again due to surging sales and profits following new ‘avenues of growth’

Next has reported an 8% rise in total group sales to £2.95bn as well as a 4.4% jump in full-price sales for the six months to July 2024.

Profit before tax at the fashion giant also surged 7.1% during the half to hit £452m, up from £422m during the same period last year.

Next said today that it “feels like the start of a new phase in the company’s development” as it highlighted overseas growth, bolstering its brands and third-party licences, as well as its Total Platform investments as “three new avenues of growth”.

During the half, Next said its UK business remained flat at 1% growth as a result of “tough comparisons” due to last year’s warm weather.

Despite this, the retailer’s overseas business boomed and was up 23% during the period.

In terms of outlook, Next now expects full-year total group sales to jump 6.6% and full-price sales to also be up 4% respectively.

Full-year pre-tax profit guidance has also been hiked by 15% to £995m, up 8.4% compared with last year.

In a statement, Next said: “We enter this new era in a more positive frame of mind with new avenues of growth and a more stable business.

“Retail sales have stabilised and, though the shift to online may not have run its course, its effects are much diminished; not least because retail is a much smaller part of our business.

“The business has changed beyond recognition, but our ability to weather the storm was rooted in three core strengths which continue to be at the very heart of the business.”