The NEXT retail chain has raised its profit forecast for the full year after reporting another strong set of quarterly results. The upgrade marks the third time it has raised its outlook this year.
In the three months to 24 October, full price sales were up a better-than-expected 2.8%, while total sales were up 1.4%. The growth was driven by a 23.1% jump in online sales, which offset a 17.9% slump at its retail stores.
The company said its out-of-town retail parks continue to perform better than its High Street and shopping centre outlets. Demand for homeware and childrenswear remains strong, but formal wear sales continue to remain weak.
The results meant that year-to-date full price sales were down 20.5%, with the 47.2% drop at its retail stores offsetting a 1% uptick online.
NEXT now expects a full-year profit of £365m, up from the £300m target it had set in September. It also expects net debt to reduce to £625m by the end of the year, a £487m reduction.
