High Street favourite Next has revealed that favourable weather conditions and disruption at Marks & Spencer following its recent cyberattack have enabled it to surpass expectations once more.
The Lord Wolfson-led fashion retailer announced that full price sales climbed by over 10 per cent during the first half of this year, approaching £50m beyond its guidance target of 6.5 per cent for the period, as reported by .
Senior executives emphasised how the extended spell of pleasant weather had boosted sales, as increased numbers of shoppers ventured out in the sunshine and chose to refresh their wardrobes for warmer temperatures.
They also noted that "trading disruption at a major competitor" – understood to reference M&S – contributed to its stronger-than-anticipated results. The company informed investors that customers had switched to Next throughout the first six months of the year, following M&S being hit by a severe cyberattack that prevented it from processing online orders for several weeks.
"In the º£½ÇÊÓƵ, we believe we exceeded expectations in Q2 as a result of better summer weather and trading disruption at a major competitor," the firm said in its interim update. "We do not expect either of these factors to have a material effect in the second half, and so we are not increasing our guidance for º£½ÇÊÓƵ sales in H2."
Strong digital and overseas performances
Next management also disclosed that the company's international arm outperformed forecasts due to digital marketing initiatives proving to be "more effective than anticipated". This enabled the group to intensify its focus on profitable expenditure, driving revenue growth across operations in Europe and the Middle East, it stated.
The exceptional international performance – which witnessed total sales surge by more than 28 per cent during the first half – prompted it to upgrade its full-year guidance for the second half from 3.5 per cent to 4.5 per cent.
These results represent the latest in a series of encouraging announcements from the group, which has predominantly succeeded in avoiding the downturn affecting numerous º£½ÇÊÓƵ retailers.
"Yet again, Next is showing it can buck wider trends and maintain its position as the º£½ÇÊÓƵ's top retail success story," said Zoe Gillespie, wealth manager at RBC Brewin Dolphin.
She added: "Next is cautious about the second half of the year, but the company has a good track record of under-promising and over-delivering."
