(Bloomberg) — Next Plc raised its profit forecast for the fifth time and declared another special dividend as it rode out the surge in omicron infections over the Christmas shopping season on demand for party dresses and formal clothing.
The British clothing chain, which has hundreds of stores across the country, expects profit of 822 million pounds ($1.1 billion) in the current fiscal year, up from an earlier forecast of 800 million pounds. Full-price sales growth will be 12.8%, up from an earlier projection of 10% this year, the company said in a statement Thursday.
The chain’s performance was boosted by stronger-than-expected sales of formal-wear in the final quarter. The result could bolster confidence in how Britain’s wider retail sector fared over Christmas, when the omicron contagion first started to spread rapidly.
Next also intends to return 205 million pounds to shareholders through a 160-pence-a-share dividend, building on the 110-pence payout it made to investors in September.
Next also expects a strong year ahead, with a pretax profit of 860 million pounds and full price sales growth of 7%.
The retailer did warn of uncertainty as a result of the pandemic and rising inflation, with its own selling prices likely to rise about 6% in the second half of the year ahead.
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