Next raises full-year profit forecast after Q3 sales growth exceeds expectations

Clothing retailer Next raised its full-year profit forecast today after third-quarter sales growth exceeded analysts' estimates, sending the shares to a record.

An unexpected increase in sales at the company’s stores added to accelerating revenue growth at the Directory home-shopping unit, figures showed.

"Investors will be encouraged by the performance in the third quarter and by the increased guidance," Jamie Merriman, an analyst at Sanford C. Bernstein, said in a note.

Next forecast that full-year brand sales may increase by as much as 3.75 per cent, having previously anticipated an increase of as much as 3.5 per cent.

The retailer expects full-year pretax profit of as much as £680 million, up from a previous forecast of as much as £675 million. – (Bloomberg)