STOCKS | Next Shares Rise After It Raises Full-Year Guidance

Next PLC shares rose after the retailer raised its full-year guidance, lifted sales expectations, and reported savings in warehouse costs. According to Sina Finance, the stock gained 220 pence, or 1.5%, to 14,780 pence in early European trading, after touching an intraday high of 15,035 pence. The London-listed company said it now expects full-price sales, a closely watched measure, to rise 6.7% to 6 billion pounds, up from a previous forecast of 6.3%. It also raised its group sales growth outlook to 6.9% from 6.6%, with total sales targeted at 7.5 billion pounds, and lifted adjusted pretax profit guidance from 1.24 billion pounds to 1.255 billion pounds. Next also increased its international online sales outlook by an additional 40 million pounds, or 20.5%, saying overseas growth could offset a slight weakening in its UK business. It cut its UK sales outlook by 18 million pounds, lowering domestic sales growth expectations from 2.8% to 2.0% amid concerns about higher inflation, rising mortgage rates, and a weaker labor market. Royal Bank of Canada Capital Markets analysts said Next's overseas momentum was strong, driven by menswear and womenswear as well as targeted marketing in Europe and the Middle East. They added that further rises in UK real wages would benefit Next, but the company would remain sensitive to the outlook for employment and household borrowing costs. For the half year ended in July, Next's pretax profit rose to 566 million pounds from 509 million pounds a year earlier. Revenue increased to 3.45 billion pounds from 3.145 billion pounds, above the Visible Alpha consensus estimate of 3.42 billion pounds. Full-price sales rose 7.7% year on year, while total sales including discounted goods increased 8.9%.