Next warns on Q2 but holds guidance as first-quarter sales beat estimates

(Sharecast News) - UK fashion retailer Next said first-quarter sales came in ahead of forecasts and held guidance for the full year but warned that the next three months would be weaker due to wet spring weather.

Full-price sales in the thirteen weeks to April 27 were up 5.7% year on year, slightly ahead of guidance for a 5% rise.

"We expect the sales performance in the second quarter to be weaker than the first quarter because last year benefited from particularly warm weather from late May through to the end of June," the company said in a trading statement, and forecast a fall of 0.3% for the period before a 2.5% increase in the third and fourth quarters.

Next still expects annual profit before tax to increase by 4.6% to £960m.

Total annual group sales are expected to be up 6% on last year, 3.5% higher than expected underlying growth in full-price trading of 2.5%. Next said the difference in growth was due to the timing of acquisitions completed last year when it bought 97% of FatFace in October and increased its stake in Reiss to 72% from 51% in September.

Reporting by Frank Prenesti for Sharecast.com