Multichannel giant Next has seen full price sales rise by 3.2% versus last year, exceeding its own expectations.
The retailer explained that as the weather last summer was exceptionally favourable for clothing retailers, it had planned for full price sales to be down 0.3% in the second quarter this year. However, full price sales in the UK (online and retail combined) were slightly ahead of expectations, up 0.4%. Overseas ecommerce sales were much better than expected, up 21.9%.
Its latest trading statement, for the second quarter ending 01 August 2024, Next increased its profit guidance for its full year by £20mn to £980mn, a 6.7% uplift on the previous year.
Earlier this year, Next was ranked Elite in the RetailX UK Top500 2024. It stood out due to its mobile app performance, its use of navigation and for convenient collection and returns options.
The retailer said its strategy was to “retain the best of small-company common sense, speed and
decision making, whilst harnessing the best of big company infrastructure and resources”.
Through its Total Platform business it now operates a UK multichannel business of brands including Gap, Victoria’s Secret and Joules, taking a financial stake in many of them.
In fact, its latest trading statement credits its third-party brand strategy for the group’s success. Group sales, which includes sales in subsidiaries, were up 8.0% in the first half of the year. The additional growth in group sales came from the acquisition of FatFace and an increase in its shareholding in Reiss, both of which occurred in Q3 last year.
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