* Sales in last 7 weeks up 4%
* Profit outlook raised for second time in two months
* Central guidance is 2020-21 profit of 300 mln stg
* Shares up 1% at 0802 GMT
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(Adds detail, CEO comments, shares)
By James Davey
LONDON, Sept 17 (Reuters) - British clothing retailer Next
raised its profit outlook for the second time in two
months as it reported strong recent trading, attributed to cool
weather and fewer people taking overseas holidays due to the
COVID-19 pandemic.
Shares in the group were up 1% at 0802 GMT on Thursday,
paring 2020 losses to 11%, after the group also forecast a 462
million pound reduction in net debt for its year to end-Jan.
2021.
"Even in the event of another (national) lockdown it looks
like the company will still make a significant profit and still
reduce its year-end debt," Chief Executive Simon Wolfson told
Reuters.
He said Next was looking for more small acquisition
opportunities thrown up by the crisis.
The group, which trades from about 500 stores in the UK and
Ireland, 184 overseas, and its Directory online business, said
full-price sales in the last seven weeks were up 4%
year-on-year.
Next does not expect to sustain that that growth. Its
central scenario assumes that sales will be down 12% for the
rest of the year.
That scenario takes into account the economic discomfort of
the UK government's furlough job support scheme coming to an end
in October, the onset of colder weather worsening the effects of
the pandemic and recently enhanced social distancing rules
depressing demand for gifts and clothing associated with
traditional Christmas family get togethers.
Next's central guidance now assumes a full year pretax
profit of 300 million pounds, up from its view in July of 195
million pounds but sharply down from the 729 million pounds made
in 2019-20.
The forecast profit decline mainly reflects the impact of
the coronavirus lockdown which closed its stores.
Next reported first-half profit of 9 million pounds, with
full price sales down 33% due to the lockdown.
($1 = 0.7728 pounds)
(Reporting by James Davey; Editing by Jan Harvey, Kate Holton &
Simon Cameron-Moore)