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Next Shares Rise After Q3 Sales Beat Company Expectations

Published 2022-11-02, 04:44 a/m
© Reuters.
NXT
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By Scott Kanowsky 

Investing.com -- Next (LON:NXT) reported a better-than-expected uptick in revenue in the third quarter thanks to a September jump in demand for bulkier items that helped offset a slide in digital sales.

The U.K. fashion retailer posted a 0.4% year-on-year increase in total full-price sales plus interest income in the thirteen week period to October 29, beating company-compiled estimates.

Much of this beat was fuelled by an 11% surge in sales in the final week of September, when a cold snap boosted demand for pricier heavier weight products. Full-price sales in the last five weeks have also risen by 1.4%.

However, online sales dropped by 1.9%.

Shares in Next climbed in early trading on Wednesday.

The company also backed its 2022 income guidance, which it previously pared back earlier this year.

Next estimated that full-year pre-tax profit will come in at £840M, translating to earnings per share of 554.5p. But full-price sales are still seen dipping over the rest of the year, with the figure estimated to contract by 2% on an annualized basis in the fourth quarter.

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