* Third quarter full price sales beat guidance
* Q4 sales and full year profit guidance maintained
* Next expects sales growth to slow
(Adds detail)
By James Davey
LONDON, Nov 3 (Reuters) - British clothing retailer Next
beat guidance with a 17% rise in third-quarter
full-price sales compared to 2019, before the pandemic disrupted
trading, but maintained its full-year profit guidance as it
expects sales growth to slow.
Next, which trades from about 500 stores and online, said on
Wednesday the impact of pandemic pent-up demand was likely to
continue to diminish.
It said stock availability had improved since September but
remained "challenging", with delays in its international supply
chain being compounded by labour shortages in the UK transport
and warehousing networks.
Next said that to date stock limitations had been offset by
strong underlying demand.
"Although consumer finances are in good shape, price
increases in essential goods (such as fuel) may moderate demand
for more discretionary purchases," it added.
Next had reported in September that full-price sales in the
first eight weeks of its fiscal third quarter had risen 20%.
It said on Wednesday they had risen 14% in the final five
weeks of the period to Oct. 30. This was ahead of its forecast
of 10% growth.
Third-quarter online sales rose 40%, while store sales in
the United Kingdom and Ireland were down 6.1%.
However, Next, which has upgraded its guidance four times
this year, kept its forecast for full-price sales in the fourth
quarter to rise 10% versus 2019-20 and for a full-year pretax
profit of 800 million pounds ($1.1 billion), up 6.9% compared to
2019-20.
"We do not expect sales to continue at the level seen in
Q3," it said.
Next has proved a resilient performer during the pandemic,
benefiting from its long-established online operations.
Rivals with weaker or no online business, notably Primark
, saw large falls in sales. Others, such as Topshop-owner
Arcadia, and Debenhams went bust.
Shares in Next, up 47% over the last year, closed Tuesday at
8,312 pence, valuing the business at 11.1 billion pounds. The
stock hit a record high in September.
(Reporting by James Davey, Editing by Paul Sandle and Emelia
Sithole-Matarise)