Subsequent: Pent-up demand for summer time outfits delivers gross sales surge for trend retailer | Enterprise Information

Buyers’ pent-up demand for summer time outfits has helped trend retailer Subsequent smash gross sales targets and elevate its revenue forecast.

A staycation enhance to UK shopper spending and the build-up of financial savings throughout lockdowns had been additionally given as key elements behind the success.

Shares within the group surged greater because it reported an 18.6% rise in full-price gross sales for the 11 weeks to 17 July in contrast with 2019 ranges.

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Hole struggles to be related to customers

Subsequent had beforehand stated it anticipated gross sales development of three%.

The corporate additionally stated it had determined to repay a part of the enterprise charges aid it had acquired throughout the pandemic – price £29m.

In the meantime it plans to distribute £240m in surplus money to shareholders by way of a particular dividend later this 12 months.

Subsequent attributed the gross sales efficiency to elements together with “pent-up demand for grownup clothes, with many purchasers having made fewer summer time purchases over the last 18 months”.

It additionally pointed to “the onset of extraordinarily heat climate on the finish of Might and begin of June” and stated development had slowed considerably as soon as that spell had handed.

In the meantime, Subsequent stated, fewer holidays taken abroad “are more likely to have elevated home spending within the UK” whereas shopper financial savings had “materially elevated during the last 12 months”.

A shop worker cleans the exterior of a Next retail shop on Oxford Street following the introduction of measures to bring England out of lockdown. 11/6/2020
Retailer gross sales had been nonetheless decrease than pre-pandemic ranges

It cautioned that it didn’t anticipate gross sales for the remainder of the 12 months to carry out at such “exceptionally robust ranges”.

The group lifted its steerage for full 12 months income by £30m to £750m.

Subsequent achieved the gross sales cheer regardless of retailer gross sales nonetheless lagging 6% behind the place they had been in 2019, with on-line commerce up 44%.

Shares had been 7% forward in noon buying and selling.

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