Next Reports Sales Profit

Fashion retailer Next has seen like-for-like sales increase over the second half of the year, but has lowered its profit forecasts after a poor response to its end of season sale. Next said its store sales from August 3 to December 24 grew by 12.1 per cent, with like-for-like sales in the 285 stores unaffected by new openings up 2.9 per cent, below the same period last year. Total like-for-likes, including 49 stores directly affected by new openings, were up 0.5 per cent.

The Next Directory home shopping business saw sales grow by 13.4 per cent across the period, with combined store and directory sales up 12.4 per cent. Next said clearance rates for the end of season sale have been below expectations, with stock levels higher than originally planned. The company has lowered internal profit forecasts by £5m, now expecting group pre-tax profits for the full year to be in the range of £415m to £425m, which Next said is "broadly in line with market expectations".