Next shares surge on sales and profits upgrade
TV presenter Emma Willis has a collection at Next
Shares in fashion retailer Next shot up by as much as 9% after saying it was upgrading its profits guidance following a surge in sales.
In an unscheduled update it said a combination of pent-up demand, warm weather, fewer overseas holidays and accumulated consumer savings had led to an 18.6% rise in full-price sales in the three months to 17 July on expectations of a 3% uplift.
The company said it now expected annual pre-tax profits of £750m, up £30m from previous forecasts and towards the top end of estimates.
Next said it was also repaying £29m in business rates relief received after consultation with major shareholders.
Shares closed 7.47% higher at 7996p.
Russ Mould, investment director at AJ Bell said: “Next is managing to keep its stores more relevant by using them for a combination of click and collect, customer services and as a showcase for products.
“Before the pandemic, Next’s online customers collected nearly half of their orders from stores and more than 80% of returns went back to a physical store rather than in the post.