# Britain’s Next sticks to outlook after quarterly sales rise
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-02
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Next Reaffirms Full-Year Guidance Despite Sales Rise
Meta Description: British retailer Next surpasses expectations with a rise in full-price sales, despite challenges. Stay updated on their financial outlook.
URL: https://financedigest.com/britains-next-sticks-to-outlook-after-quarterly-sales-risehtml

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By James Davey

LONDON (Reuters) -British clothing retailer Next reaffirmed full-year guidance that was cut in September as it reported a 0.4% rise in third-quarter full-price sales, slightly ahead of its expectations, sending its shares higher.

Next, which trades from about 500 stores and online and is often considered a gauge of how British consumers are faring, said on Wednesday it still expected full price sales for the rest of its 2022-23 year to fall 2% and a full-year pretax profit up 2.1% to 840 million pounds ($967 million).

The [group said full-price sales](https://www.financedigest.com/crown-agents-bank-owner-explores-sale-of-british-payments-group-sources.html "Crown Agents Bank owner explores sale of British payments group –sources") in the last five weeks of its quarter to Oct. 29 were up 1.4%, boosted by one particularly strong week at the end of September, when temperatures dropped and [sales of heavier weight products improved](https://www.financedigest.com/european-junk-debt-sales-spring-back-to-life-as-sentiment-improves.html "European junk debt sales spring back to life as sentiment improves").

Over the quarter [store sales](https://www.financedigest.com/ikea-stores-owner-ingka-says-campaigns-help-boost-store-visits-and-sales.html "IKEA stores owner Ingka says campaigns help boost store visits and sales") in the UK and Ireland were up 3.1%, while online sales fell 1.9%.

[Shares in Next](https://www.financedigest.com/britains-next-sees-lower-clothing-inflation-shares-dip-on-cautious-outlook.html "Britain’s Next sees lower clothing inflation, shares dip on cautious outlook") were up 3.6% at 0842 GMT.

UK consumers have been [reining in their spending with inflation](https://www.financedigest.com/can-the-fed-rein-in-inflation-before-a-recession.html "Can the Fed Rein in Inflation Before a Recession?") hitting 10%. They also face the prospect of a tighter squeeze in 2023 after finance minister Jeremy Hunt said he would scrap tax cuts planned by former prime minister Liz Truss and [scaled back](https://www.financedigest.com/mifid-ii-why-you-should-not-scale-back-your-implementation-efforts.html "MIFID II: WHY YOU SHOULD NOT SCALE BACK YOUR IMPLEMENTATION EFFORTS") her vast energy support scheme for households.

A survey published last month showed consumer confidence remained close to a [record low as households responded to the combination of high inflation](https://www.financedigest.com/uk-shop-price-inflation-hits-record-8-in-january-brc-2.html "UK shop price inflation hits record 8% in January: BRC") and Britain’s chaotic politics.

[Next has shown more resilience than most but its shares are still down 36% this year](https://www.financedigest.com/1-in-10-workers-considering-a-career-change-in-the-next-year.html "1 in 10 workers considering a career change in the next year").

Its rivals Primark, Boohoo and ASOS have all [warned on the profit](https://www.financedigest.com/bootmaker-dr-martens-warns-on-profit-as-finance-chief-walks.html "Bootmaker Dr Martens warns on profit as finance chief walks") outlook in recent months as they face higher energy and staff costs and a weak pound.

E-commerce giant Amazon has also warned of a [slowdown in sales](https://www.financedigest.com/logitech-quarterly-sales-fall-22-as-slowdown-fears-bite.html "Logitech quarterly sales fall 22% as slowdown fears bite") growth in Europe this Christmas.

[“Next faces UK consumer](https://www.financedigest.com/britains-next-sees-lower-profit-in-2023-as-consumer-outlook-darkens.html "Britain’s Next sees lower profit in 2023 as consumer outlook darkens") headwinds, however over the long term we continue to believe that Next should be able to achieve a higher rate of sales growth than the 2% that it has achieved historically,” analysts at RBC Europe said.

(Reporting by James Davey; editing by Louise Heavens and Jason Neely)


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