theguardian_business

Next upgrades profit outlook again as it benefits from summer spending

📰 source: theguardian_business · 💼 business

next upgraded its profit guidance for the third time this year, now expecting pre-tax profit of £1.2bn for the year — about £25m higher than previously guided and a potential 7.3% rise on last year. the clothing and homeware retailer cited sunny weather and pent-up demand in the middle east and northern europe for the 13 weeks ended 1 august.

full-price sales rose 9% in the second quarter, more than double its initial 4% estimate. shares jumped almost 7% to a record high on wednesday morning, making it the best ftse 100 performer. the company, which owns uk rights to gap and victoria's secret and has stakes in reiss and joules, has a history of under-promising and over-delivering, pushing its share price up over 20% in the past year.

meanwhile, other retailers are struggling. john lewis' chair jason tarry warned of lower sales and higher costs, citing a tough trading environment partly due to inflation and falling consumer confidence from the iran war. garry white of raymond james said next can 'outperform despite a challenging backdrop for consumer spending.'

why it matters: third profit upgrade in a year signals next's resilience while rivals struggle, supporting its premium valuation and sector outlook.

source: theguardian_business
sentiment: +0.60 · impact: 0.50

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Surprise fall in US jobs last month as slow summer continues

Homes are selling below asking in 38 of the 50 biggest U.S. cities—if you can afford one

China is gaining ground in AI. But the U.S. still has a major advantage

US strikes $1.2bn deal to pay German firm to halt offshore wind projects