Subsequent will get gross sales elevate from sunny climate and M&S disruption

[ad_1] Subsequent has reported bumper gross sales between Might and July as sunnier UK climate and a disruptive hack at its rival Marks & Spencer despatched prospects flocking to the garments and homewares retailer.

Full-price gross sales at Subsequent within the 13 weeks to 26 July rose by 10.5%, in contrast with the identical interval final 12 months, which was £49m forward of its steering forecast of a 6.5% rise in takings.

“Within the UK, we consider that the over-performance was largely resulting from higher than anticipated climate and buying and selling disruption at a serious competitor,” Subsequent stated, referring to the damaging cyber-attack that pressured M&S to pause on-line buyer orders for nearly seven weeks and led to some shortages in shops.

Subsequent stated its worldwide gross sales additionally grew sooner than anticipated, which it chalked as much as a digital advertising and marketing technique that had “proved simpler than anticipated”.

The figures solidify Subsequent’s profitable streak after the retailer reported in March it had surpassed £1bn in annual revenue for the primary time. Whereas the group sells garments and homeware beneath its Subsequent model, it additionally controls the UK distribution of the US manufacturers Hole and Victoria’s Secret, creates Laura Ashley homewares, Ted Baker childrenswear and lingerie, and sells dozens of different manufacturers it doesn't personal through its web site.

The retail group, which is headed by the Conservative peer Simon Wolfson, stated it was now elevating its forecast for progress in full-price gross sales within the second half of the 12 months to 4.5%, up from 3.5% beforehand, which was anticipated to lead to an additional £27m in gross sales for the group.

This was primarily resulting from stronger than anticipated efficiency at its worldwide operations after the advertising and marketing successes. Subsequent stated it was not elevating steering for the UK, the place gross sales had been anticipated to gradual within the second half of the 12 months to a progress price of 1.9%, versus 7.6% within the first half.

The retailer stated this was partly because of the UK’s hike in employer nationwide insurance coverage contributions, which it stated had been anticipated to “persevering with to filter by the economic system” and would “dampen client spending because the 12 months progresses”.

It added that it was unlikely to expertise any continued profit from good UK climate and the disruption at M&S. “We don't count on both of those components to have a fabric impact within the second half and so we aren't growing our steering for UK gross sales,” Subsequent stated.

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Shares in Subsequent dipped by 1% in morning buying and selling on Thursday, however had been nonetheless up greater than 25% to this point this 12 months.