StockMarketWire.com - Retailer Next said it had increased its full-price sales and profit guidance for the second half after better-than-expected sales performance in the second quarter.
Full-price sales in the second quarter rose 4% year on year, which was 4.5% better than the guidance of -0.5% the company gave in its May trading statement, it said. However, the growth came entirely from online (up 12% in the second quarter), offsetting a further drop in retail sales (down 4.2%).
Full-price sales in May and June combined were up 3% while July was up 6.8%. However, the company said some of July's over-performance in full-price sales was as a result of lower markdown sales in its end-of-season sale. Accordingly, it based its second-half underlying growth guidance on the May/June numbers.
The company increased its full-price sales guidance to 3% from 1.7% previously and raised its pre-tax profit guidance 0.3% to £725m from £715m previously.
It said it now expected earnings per share to grow 5.2%, compared with 3.4% growth previously.
The firm also said it maintained its guidance to return £300m of surplus cash to shareholders, by way of share buybacks. To date it had purchased £280m.
It would announce its results for the first half of the year on Thursday 19 September 2019.
Story provided by StockMarketWire.com
Shares Magazine
Shares is the leading weekly publication for retail investors. It is packed with investment ideas, news and educational material to help build and run portfolios and get more from your money.
Investor Events
Shares puts on free Investor Events throughout the year across the country. They provide an opportunity for investors to learn more about companies on the stock market and hear from a range of investment experts including fund managers and Shares journalists.