Thursday, 14 September 2017

Fashion retailer Next upgrades sales and profit forecast

Fashion retailer Next has upgraded its forecasts for full-year sales and profits after seeing "encouraging" trading over the past three months.

While the retail environment remained tough, Next said its prospects appeared "somewhat less challenging than they did six months ago".

Next now predicts full-year profits of £687m-£747m, compared with its previous estimate of £680m-£740m.

Its forecast came as it reported a 9.5% fall in half-year profits to £309.4m.

Next also said it had not been affected as much as it feared by the fall in the value of the pound following last year's Brexit vote.
It had originally said prices were set to rise by 5% - as the weaker pound pushed up the price of imports - but it said excess capacity in the clothing manufacturing sector meant it had managed to negotiate better terms.

Next also predicted that price inflation next year would be lower, as the one-off Brexit devaluation worked its way through the system. It now expect prices to rise by no more than 2% in the first half of 2018, and no price rises at all in the second half.

BBC     News.