Next raises forecast after Christmas sales beat expectations
Clothing retailer Next continued its strong progress as the company beat its internal forecast for its Christmas performance by 1.1 per cent.
In a trading statement, the company said that total full price sales for the fourth quarter were up 5.2 per cent, with sales for the full year up 3.9 per cent.
Read more: Boxing Day shopping slump as retailers suffer sharp decline in footfall
Full year profit also increased by £2m to £727m, with earnings per share up 5.4 per cent.
The company said that it expected more growth in 2020, with initial guidance of a three per cent increase in full price sales and a £1m increase in profit.
It said it believed a colder November, as well as improved stock availability, was responsible for the improved December sales performance.
Richard Hunter, head of markets at Interactive Investor: “As many retailers bemoan the current trading environment and struggle accordingly, Next continues its strong march ahead.
“For the moment, the garden is rosy with the shares having risen 67 per cent over the last year, as compared to a 13.6 per cent hike for the wider FTSE 100, and 28 per cent in the last six months alone.”
Analysts said they hoped the results would pave the way to a positive start for the much maligned retail sector in 2020.
Shares in retailers ASOS and M&S were also up in early trading.
Read more: Super Saturday fails to deliver footfall spike
Joe Healey, investment research analyst at The Share Centre, said the results proved just how important Next’s online offering was to its business, something that other companies should note.
However, he added that retailers are still likely to face a difficult 2020 as the sector remains blurred by the current macroeconomic factors and impacts of the unseasonal weather.