Next has announced a 5.7% increase in full price sales for its opening quarter compared to last year.

The fashion retailer said it is slightly ahead of its own guidance for this period, covering the 13 weeks to 27 April, which was to be up 5%.

Across the full 2024/25 financial year, Next is anticipating full price sales to total £4.9bn, which would be up 2.5% compared to 2023/24. This implies that the retailer’s sales in Q2 will be down -0.3%, as Next said it expect the sales performance in the Q2 to be weaker than the opening quarter because last year benefited from warm weather between late May through to the end of June.

Next’s profit before tax for the full year is forecast to total £960m, a figure that would equate to a 4.6% improvement on last year.

Equity analyst at Hargreaves Lansdown, Guy Lawson-Johns, commented that Next’s online revenues were continuing to drive the group’s outperformance.

“Next’s significant work to enhance its online service is paying dividends,” Lawson-Johns added. “Improved stock availability and seamless operational execution are driving performance beyond anticipated levels.

“First-half guidance for 2.5% full-price sales growth has been maintained, implying a drop of 0.3% in the second quarter. This reflects a tough comparative period from late May to June due to particularly warm weather last year. Full-price sales are expected to return to 2.5% growth in quarters three and four.

“Where question marks remain is whether delivering expected results will soon be good enough. Next has made a habit of under promising and over delivering to investors. While this often makes for good reading, it means markets have grown to expect more.”

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