Next reveals slower demand from UK shoppers but international sales surge
Next told investors that total full-price sales rose by 8.1% for the 13 weeks to October 31, compared with a year earlier.
Fashion firm Next has revealed slowing sales in the UK as warmer weather dragged on demand from shoppers in September.
But the retail giant said total growth improved in the latest quarter after it was offset by stronger international growth, improving its sales targets as a result.
Next told investors that total full-price sales rose by 8.1% for the 13 weeks to October 31, compared with a year earlier.
It said this was around £33 million ahead of guidance, having pointed to growth of 5.8% for the current half-year.
It added that this followed 7.7% growth in the first half of the current financial year.
The performance came despite weakness in the UK, where quarterly sales growth eased back to 2%, compared with 3.6% in the six months prior.
UK online sales slowed to 4.4% for the quarter from 7.4% in the first half of the year.
Meanwhile, retail sales were steady but remained in decline, with a drop of 1.7%.
Next said UK sales slowed “as expected” in recent months, highlighting a “volatile” performance in the region amid pressure on household budgets.
The company also partly blamed untypically warm temperatures in September, with sales declining for significant parts of the month.
The Office for National Statistics (ONS) recently highlighted that sales volumes among fashion retailers declined in September as the weather conditions impacted demand for autumn and winter lines, such as jackets and coats.
Next said this was offset by its international business, which saw sales surge by almost a third, 32.2%, and surpassed forecasts of 20.5% growth.
It said it saw growth through direct sales and third-party aggregators after increasing its marketing investment.
The company said it therefore expects total group sales to be slightly stronger than previous forecasts.
It said it is on track for total sales to have growth of 7.6% to £7.54 billion for the year to January, having previously guided towards a 6.9% increase to £7.49 billion.
Profits are still forecast to grow by 8.4% to £1.255 billion for the year, Next said.