Next starts strong as warm weather helps company beat forecasts

29th Apr 2015 07:22

Full-price sales at Next since the start of the year rose 3.2%, ahead of guidance from March thanks to new store openings and warmer weather.More than half of the rise of 1.9% came from the opening of new space, while another boost came from the decision to send out its Next Directory brochure earlier than it did last year, which was estimated to have increased the reported number by around 0.6%.With Directory sales an impressive 7% higher for full price items and up 9.2% in total, total group sales in the first 13 weeks of the year to 25 April were up 4.1% year-on-year."This was as a result of a longer tail to our winter end-of-season sale and a larger mid-season sale in Directory," the FTSE 100 group explained in a short trading statement, also confirming another 60p special dividend on 3 August.In March, management was budgeting for full price sales growth for the full year to be up between +1.5% and +5.5%, with the first half expected to be up 0% to 3%, and the second half up 3.5% to 7.5%. Full year pre-tax profit was guided to a range of £785m-£835m.With tough comparative figures to beat in the second quarter the company did not changed their full-year guidance and gave no more details on the immediate outlook.Independent analyst Nick Bubb characterised the result as "a bit ahead of worst fears".He added: "Given the fashion range problems this spring and worries about slowing Directory sales growth, the City will be pleased to see Directory sales looking strong at +7%."