Retailer Adjusts Q2 Forecast to Maintain First Half Expectations

  • Next maintains profit guidance despite better than expected sales
  • Full price sales dropped 0.7% in Q1
  • Online sales declined 1.6%, in-store sales fell 0.6%
  • Q2 sales forecast revised to a 5% drop from 4% previously
  • Company cites warm weather and pent-up demand for caution in Q2 expectations

Next has maintained its profit guidance for the full year despite seeing better-than-expected sales figures in the first quarter. The company’s profit before tax is forecasted at £795m, and earnings per share are expected to be 501.9p. Full price sales dropped 0.7% for the 13 weeks ending April 29th, surpassing the 2% decline initially anticipated. Online sales fell by 1.6%, while in-store sales decreased by 0.6%, contributing to the overall decline. The company has moderated its Q2 forecast, revising it from a 4% drop to a 5% drop to sustain its first half expectations. Next explained: ‘Although our first quarter performance moderately exceeded our sales guidance, we believe it is too early in the year to alter our overall sales expectations for either the half or full year. We cited in March that the second quarter last year benefited from unusually warm weather and pent-up demand for events such as weddings, proms, etc.’

Factuality Level: 8
Factuality Justification: The article provides accurate information about Next’s financial performance and sales figures, with no clear signs of sensationalism or misleading content. It also includes a reasonable explanation for the company’s cautious outlook on Q2 sales.
Noise Level: 3
Noise Justification: The article provides relevant information about Next’s financial performance and sales figures, but it lacks in-depth analysis or exploration of the reasons behind the results and potential long-term implications.
Financial Relevance: Yes
Financial Markets Impacted: Next’s stock price and retail sector
Financial Rating Justification: The article discusses the financial performance of Next, a retail company, and its impact on the retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no mention of an extreme event in the article.

Reported publicly: www.retailsector.co.uk