Next enjoys soaraway summer as warm weather boosts demand for fashion
Then enjoy the distant summer as warm weather and April pay rises boost demand for fashion
In fashion: Next said trading over the past seven weeks was “materially better” than expected
Sales at Next are booming as warm weather and hefty wage increases boost demand for fashion. The retailer said yesterday that trading over the past seven weeks has been “materially better” than expected. Sales for the period were £93m higher than forecast in May when it warned of a 5 per cent slump.
Instead, sales increased by 9.3 percent. Next said full-year sales would be £137m better than previously thought. It also raised its profit forecast by £40m to £835m. The company attributed the sales boom to “the onset of warmer weather” that boosted demand for summer clothing after a wet and cold April.
It also pointed to annual pay increases, many of which take place in April. “We don’t think it’s a coincidence that sales increased so much at a time of year when many organizations are awarding their annual rewards,” said a Next spokesperson.
However, the company warned of a delay in its update: “If wage increases and the sudden change in weather have contributed to the overperformance, it is reasonable to expect the effect to diminish over time, as continued inflation will outweigh the effect of annual wage increases.” .’