NEXT (NXT) Trading Update summary

Sales performance and trading update

• Q2 full price sales rose 3.2% year-on-year, beating expectations by £42m despite tough comparatives from last year's strong summer.

• H1 full price sales increased 4.4% versus last year, outperforming the 2.5% guidance.

• Total Group sales, including markdown, subsidiaries, and investments, grew 8.0% in H1, driven by acquisitions of FatFace and increased stake in Reiss.

• Online overseas sales surged 21.9% in Q2, while UK retail sales declined 4.7%.

• Surplus stock for the end-of-season sale returned to more normal levels, with clearance rates meeting forecasts.

Updated guidance and outlook

• Full year profit guidance raised by £20m to £980m, up 6.7% year-on-year, due to higher sales and £9m in logistics cost savings.

• Full price sales for the full year are forecast to rise 3.4%, with H2 guidance maintained at 2.5% growth.

• Total Group sales for the year expected to reach £6.2bn, up 6.0% from last year.

• Pre-tax EPS forecast at 818.8p (+8.1%), post-tax EPS at 616.5p (+6.5%).

• Interim results announcement scheduled for 19 September 2024.

Strategic developments and acquisitions

• Growth in Group sales partly attributed to the acquisition of 97% of FatFace and increased equity in Reiss to 72%.

• Acquisitions completed in Q3 last year contributed to the higher Group sales growth compared to NEXT Trading full price sales.