Next raises profit forecast as international business outperforms

Next ($NXT-LSE) lifted its full-year group pre-tax profit forecast to £1.255 billion, an increase of approximately £12 million from its previous expectation. The revised target implies growth of 8.4%. Statutory first-half pre-tax profit rose to £566 million from £509 million, while revenue reached £3.45 billion. Full-price sales increased 7.7%, supporting the retailer’s improved outlook.

The upgrade was driven by international performance and operating savings rather than uniformly stronger demand. Next added £40 million to its international sales expectations but reduced its projected second-half UK sales growth to 2% from 2.8%. The board also declared a 98-pence interim dividend. The figures therefore combine improved group profitability with a more cautious view of the domestic market, rather than an across-the-board sales upgrade.

Sources:

• Next — half-year report, pp. 3 and 23
• Next — RNS announcement and dividend