(Adds detail)
LONDON, Oct 30 (Reuters) - British clothing retailer Next
said on Wednesday sales picked up in October after a
poor start to autumn trading and the group kept its profit
guidance for the full 2019-20 year.
Next, which trades from about 500 stores in the UK and
Ireland, about 200 stores in 40 countries overseas and its
Directory online business, said full price sales including
interest income rose 2.0% in its third quarter to Oct. 26,
slightly ahead of guidance given in September.
Last month Next had reported a "disappointing" start to
autumn trading, attributing it to unusually warm weather in
parts of Britain rather than shoppers holding back on buying new
clothes due to uncertainty over Brexit.
The group said it believed that strong sales in July pulled
forward sales from August. It said that while sales in September
were adversely affected by the warm weather, it saw a
significant improvement in October, with sales up 5%
year-on-year when temperatures fell.
"We believe the improved sales growth in October recouped
some of the lost sales in September and we do not expect sales
growth for the rest of the year to be as strong as October," it
added.
For 2019-20 Next foresees full-price sales up 3.6% and
pretax profit of 725 million pounds ($934 million), a 0.3% rise
on the 2018-19 outcome, with earnings per share growth of 5.2%,
reflecting share buybacks.
Shares in Next, up 72% so far this year, closed Tuesday at
6,850 pence, valuing the business at 9.12 billion pounds.
($1 = 0.7763 pounds)
(Reporting by James Davey; editing by Sarah Young)