Next experiences 'sharp reversal' of lockdown trends in H1

Clothing retailer Next said on Thursday that sales in the first half had been "dominated" by "a sharp reversal" of the previous year's lockdown trends.

Next stated second-quarter full-price sales were up 5% year-on-year, driven by a 0.2% increase in online sales and a 12% jump in retail sales amid "unusually warm and dry weather" in June and July.

The FTSE 100-listed group also increased its full-year profit guidance by £10.0m to £860.0m and raised earnings per share forecasts by 7.2%. Full price sales guidance for the second half was also maintained at 1.0%.

Next also highlighted that many product trends also returned to pre-pandemic norms, with lockdown winners such as home and sportswear retreating, while formalwear returned to favour. Online returns rates and surplus stock also reverted to pre-Covid levels.

Reporting by Iain Gilbert at Sharecast.com