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Next Raises Profit Outlook, Announces Special Dividend After Q3 Sales Beat

Results reflect improved stock availability, heavier overseas marketing, temporary rival disruption.

Overview

  • The FTSE 100 retailer increased full-year pre-tax profit guidance by about £30 million to roughly £1.135 billion.
  • Full-price sales rose 10.5% in the 13 weeks to October 25, with UK sales up 5.4% and overseas up 38.8%.
  • Management now expects about 7% full-price sales growth in the quarter to January, up from 4.5%.
  • Next will return surplus cash via a special dividend of around 310p per share from a forecast £369 million surplus and will pause further buybacks as the share price sits above its £121 cap.
  • Shares rose about 5% on the update, marking another in a series of guidance upgrades over recent months.