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LONDON, Jan 3 (Reuters) - British clothing retailer Next
edged up its profit forecast for the full 2019-20 year
after better-than-expected sales in the Christmas trading
period, helped by a much colder November than last year.
Next, the first major UK listed retailer to update on
Christmas sales, said on Friday full-price sales including
interest income rose 5.2% in the period from Oct. 27 to Dec. 28,
the bulk of its fiscal fourth quarter. That was 1.1% ahead of
Next's internal forecast and compared to third quarter growth of
2%.
The group, which trades from about 500 stores in the UK and
Ireland, about 200 stores in 40 countries overseas and its
Directory online and catalogue business, said its sales
performance in the period was also assisted by improved stock
availability in both its retail stores and online.
As a result Next increased its full-price sales growth
guidance for the year by 0.3 percentage points to 3.9% and its
profit guidance by 2 million pounds ($2.6 million) to 727
million pounds, an increase of 0.6% on 2018-19. It also forecast
earnings per share (EPS) growth of 5.4%, which partly reflects
share buy backs.
Looking further out to the 2020-21 year, Next's guidance is
for full-price sales to increase 3.0%, profit to grow 1.0% and
EPS to rise 3.4%. Surplus cash generation was forecast at 290
million pounds.
Shares in Next, up 67% over the last year, closed Thursday
at 6,954 pence, valuing the business at 9.35 billion pounds.
($1 = 0.7621 pounds)
(Reporting by James Davey, Editing by Paul Sandle)