NEXT plc reported higher first-half sales and profit, led by international online growth and its owned brands, and said it would raise its interim dividend 12.6% to 98 pence per share. Total group sales rose 9% and full-price sales climbed 7.7%, beating the company's prior expectation of 4% growth, while profit increased 10.5% and margins improved by 0.3 percentage points. International full-price sales grew 24%, with Europe contributing nearly £100 million of the £133 million increase in overseas full-price sales, and sales of NEXT's wholly owned brands and licences rose 33.5% in the U.K. and 82% internationally. Chief Executive Simon Wolfson said the retailer had become more cautious on the U.K. consumer outlook for the second half, cutting its second-half U.K. sales expectations on anticipated pressure from fuel and other inflation, but NEXT maintained full-year guidance for 6.7% sales growth and profit before tax of about £1.255 billion, up 8.4%. First-half share buybacks totaled £355 million, and NEXT expects roughly £500 million to be available for shareholder distributions during the full year after capital expenditure and ordinary dividends, which Wolfson said could take the form of a special dividend, further buybacks or another capital return.
Next PLCNEXT reported H1 profit up 10.5% with improved margins, raised its interim dividend 12.6%, and maintained full-year guidance.
