Next raises FY forecasts on bumper Xmas full-price sales

Fashion retailer Next raised full year profit guidance as a colder November and improved stock availability provided a boost for sales over the Christmas period.

Fourth quarter full price sales to December 28 were up 5.2%, 1.1% higher than Next's own forecasts. Full year profit guidance increased by £2m to £727m.

Next on Friday said initial guidance for the year ending January 2021 was for a 3% rise in full price sales, profit up 1% to £734m, and earnings per share growth of 3.5%.

“This guidance is based on a 52 week sales period. However, next year will be a 53 week year to 30 January 2021 and we expect the additional week of sales to generate approximately £13m of profit,” Next said in a trading statement.

Online operations rose more than 15%, but in-store sales were almost 4% lower between during the period.

The company said it planned to return at least half of its surplus cash, or £145m, to shareholders in the first half.