Sun shines on Next as warm weather lifts sales
CLOTHING chain Next said British shoppers had become “harder to read” yesterday as warmer weather helped it lift sales.
Next, led by chief executive Simon Wolfson, said shoppers’ buying habits had become more “spontaneous” with their trips to the high street affected by short-term events such as “a change in the weather, the timing of bank holidays and school holidays”.
This it claimed had led to weekly sales volatility making short-term consumer trends harder to read.
Nevertheless Next said sales had risen 2.3 per cent in the 26 weeks to July 27 with takings in its stores down 0.9 per cent but its online arm soaring 8.3 per cent.
It added that higher full-price sales and lower markdowns would add £10million to first-half profits of between £635million and £675million.
Its shares rose 118p to 5020p.
Wolfson played down talk of a consumer recovery saying the UK needed “wages to grow faster than inflation, which means inflation needs to come down or we need more growth”.
Analysts Numis said Next had benefited from improved high-street conditions in June and July’s warmer weather.