Proactive Investors - Next PLC (LON:NXT) held guidance for sales and profits for the full year as it reported sales had fallen by less than forecast at the start of the financial year.
The high street retailer said in the 13 weeks to 29 April 2023, full-price sales were down 0.7% versus last year, moderately ahead of the guidance for this period, which was to be down 2%.
As a result, the Leicester-based firm maintained sales and profit guidance for the full year, with pre-tax profit forecast to be £795mln and earnings per share 501.9p.
Online sales fell 1.6% in the period while retail sales dipped 0.6%. Including finance interest income growth of 7.4% left the overall full-price sales figure 0.7% lower.
Despite the stronger sales performance, Next said it believes “it is too early in the year to alter our overall sales expectations for either the half or full year“.
To maintain the first-half forecast, “we have moderated our sales forecast for the second quarter, which is now planned to be -5% down on last year (previous guidance was -4%).”
It described this adjustment as “reasonable,” as some of the first quarter's success, particularly in holiday clothing sales leading up to Easter, might have been pulled forward from the second quarter.