Next sales beat forecasts but retailer cautious on Q2

Next’s first-quarter sales surpassed forecasts, but the retailer predicts a weaker second quarter due to a strong prior-year comparison

Next (LSE: NXT) saw first-quarter sales exceed expectations, but the clothing retailer remains cautious about the outlook and predicts a weaker second quarter.

For the 13 weeks ending April 27, Next reported a 5.7% rise in full-price sales compared to the previous year, exceeding its own guidance of a 5% increase. While online sales thrived with an 8.8% improvement, physical stores saw flat growth.

Next maintained its full-year forecast, anticipating a 2.5% increase in full-price sales, translating to a slight decline of 0.3% in the second quarter. The company attributes this expected dip to unusually warm weather during the same period last year.

Despite cautiousness, the FTSE 100 retailer expects total group sales, including subsidiaries and markdown sales, to reach £6.2 billion, reflecting a 6% annual rise. Pre-tax profit is also expected to climb 4.6% to approximately £960 million.

Next will release a trading statement for the first half of its 2025 financial year on August 1. The company’s share price dipped slightly by 0.4% on Wednesday morning, though it remains 11% higher year-to-date.

Subscribe to Investomania for more Next news and updates.

Sign up for Investomania

Subscribe to the Investomania newsletter to have our daily recap delivered directly to your inbox.

No spam. Unsubscribe anytime.