Next Raises Profit Guidance, Expects Slower Sales Growth

British retailer Next raised its full-year pretax profit outlook for the fourth time this year, adding £12 million to reach £1.255 billion, after first-half profit increased 10.5% and full-price sales rose 7.7%. Hot weather supported U.K. demand, but the company expects domestic sales growth to slow to 2% in the second half as economic concerns weigh, while international sales growth guidance was increased to 20.5%. Overseas sales and online trading remained particularly strong, with international sales rising sharply and management citing robust profitability across its U.K. retail, online and international operations. Next also pointed to cost savings, lower net debt and strong cash generation, while cautioning that warehouse, inventory and store economics require continued attention. The board declared an interim dividend of 98 pence per share, reflecting confidence in the company’s financial position.