Next’s online sales outstrip high street
UK high street fashion brand Next has reported a 9.7% rise in online sales, despite seeing a 6.3% fall in its high street retail sales for the third quarter.
The company also said cooler weather in October helped sales rebound after they were hit by unusually warm weather in September.
“We believe that strong sales in July pulled forward sales from August”, the FTSE 100-listed company said in a trading statement.
“Sales in September were adversely affected by unusually warm weather and we saw a significant improvement in October when temperatures fell."
However, the company warned that sales for the rest of the year may not be as strong as last month.
“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”, the company said.
Online vs shops
Next reported that sales on the high street fell 6.3% in the last quarter, and were down 4.8% for the year to date.
However, online was in rude health, with sales up 9.7% for the quarter and 11.1% for the year to date, underscoring the general shift among UK shoppers towards digital purchases.
Next said it estimates that full year pretax profit could be around £725m.
The company’s shares were trading 2.2% lower at £66.98 in early trading in London following the statement.