By Michael Susin Next PLC on Thursday reported a better-than-expected pretax profit increase for the first half of fiscal 2023, amid stronger retail sales, and cut its full-year profit guidance amid rising living costs.
The fashion retailer reduced its sales guidance for the rest of the current fiscal year to minus 2% from 3% compared to the previous year following a worse-than-expected fall in August sales, partially caused by increased cost-of-living pressures, which indicates a general weakening of underlying demand along with the effect of rising bills. “We may have been too pessimistic, particularly as we have yet to see the full effect of government stimulus and support measures. But, on balance, there is little to be lost from preparing for tougher times; it is likely to improve our cost control,” the company said. Next posted a pretax profit for the first half ended July 30 of 400.6 million pounds ($436.3 million), compared with a profit of GBP346.7 million a year earlier, beating a GBP390.5 million forecast taken from FactSet and based on two analysts’ estimates. Revenue for the period came in at GBP2.38 billion from GBP2.12 billion, it said. This compares to a forecast of GBP2.48 billion, …