Next has maintained its annual profit guidance after posting a small drop in first quarter full price sales.
In the thirteen weeks to 29 April, full price sales edged down 0.7% on the same period in the prior year, although this was ahead of an expected fall of 2%.
Meanwhile total trading sales, including markdown and clearance sales, rose by 1.2% in the period after trade was driven by higher sales of clearance items. This was helped by clearance stock levels returning to normal levels post-pandemic.
Despite the first quarter performance exceeding the retailer’s sales guidance, Next said it was too early in the year to alter its overall sales expectations for its half or full year.
However, it has moderated its sales forecast for the second quarter, which is now planned to be 5% down on last year compared to a previous guidance of -4%. Next said some of the first quarter’s success may have been the result of holiday clothing sales leading up to Easter being pulled forward from the second quarter.
Looking ahead to the outcome of the full year, Next is maintaining its pre-tax profit guidance of £795 million.
