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Next Plc Total Sales Edges Up; Narrows FY16 Outlook - Quick Facts

UK-based retailer Next Plc. (NXT.L) said that its full price sales in the second quarter edged up 0.3 percent on last year and was an improvement on the first quarter.

In a trading statement, the company said that Next Retail sales for the second quarter to 30 July were down 3.3 percent, while Next Directory sales grew 5.7 percent. Total Next Brand sales edged up 0.3 percent.

The company said it can see no clear evidence of any appreciable effect on consumer behaviour from the EU referendum, apart from the first few days after the vote.
Looking ahead, Next said it expects the consumer environment to remain tough for the rest of the year.

The company anticipates the third quarter will be particularly challenging, as it was its best quarter last year. Therefore, the company is budgeting for full price sales growth in the third quarter to be worse than in the second quarter.

Next plc noted that the fourth quarter presents much softer comparable numbers when the problems of an exceptionally warm 2015 winter were compounded by stock availability problems in Directory last year. So the company expects potentially some upside in the last quarter, particularly in the event of a colder winter.

For the full year, Next now forecasts group profit before tax between 775 million pounds and 845 million pounds, compared to the prior range between 748 million pounds and 852 million pounds.

The company's full price sales for the year is now projected in a range of a decline of 2.5 percent to growth of 2.5 percent, compared to the prior range of a drop of 3.5 percent to growth of 3.5 percent.

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