30 October 2024
If you are covering Next’s latest financial results, please find below a comment from Mamta Valechha, consumer discretionary analyst at Quilter Cheviot:
“Next delivered a positive trading statement today with its third quarter full-price sales increasing well over 7%, ahead of guidance of 5%. This echoes recent UK data-points of a strong start to Autumn/Winter 2024 sales driven by the early arrival of colder weather this year, versus an unusually warm September and early October last year.
“Within the numbers growth was notably driven by online, particularly overseas, which was up over 20%, while UK sales improved both online and in store after a weather impacted the first half of the year, growing 5.8%.
“Looking ahead, Next nudged up full year profit guidance by 1% based on full-price sales growth of +4.9% . Next's final quarter guidance implies a deceleration in Q4, with the release noting the company is "more confident in the two year comparison as we believe the overperformance in Q3 this year is likely to have pulled forward sales from Q4".
“All eyes are now on the UK budget later today and the cost challenges which may arrive for UK retailers.”
