Next Plc had expected Q1 sales to rise by 5% and industry experts say performance has been “impressive” considering poor weather in the UK that has depressed footfall in town centres.
Online sales rose 8.8% in the 13 weeks to 27 April while retail sales were flat.
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Next Plc has maintained its sales and profit guidance for the full year, with Next Group profit before tax forecast to be up 4.6% to £960m ($1.198bn). Full-price sales are expected to rise 2.5% to £4.9bn.
It is however anticipating a slowdown in the second quarter with sales forecast to be down 0.3% because last year benefited from particularly warm weather from late May through to the end of June.
Emily Salter, lead retail analyst at GlobalData, said: “Although consumer confidence remains weak and the clothing and footwear market has got off to a poor start in 2024, with GlobalData forecasting the market declined by 6.7% in Q1, this does not seem to have affected Next due to the versatility of its proposition. The presence of more essential items such as childrenswear, lower-priced brands on its website, and its credit offer have kept cash-strapped consumers spending with Next. When consumers start to feel better off, the retailer is also well-placed to benefit from this. It is investing in its ‘better’ and ‘best’ products at the top end of its own-brand price architecture, alongside its already wide range of premium brands, encouraging those who want to trade up to keep purchasing from Next.”
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