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Clothing retailer Next upgraded its profit guidance for the year following stronger-than-expected sales in the run-up to the Christmas period, and announced that it would be pay a further special dividend to shareholders in January.
Pre-tax profit guidance for the full year was raised by £22 million to £822 million, which would be up 9.8% versus two years ago.
For the full year, sales growth was expected to be up 12.8% versus 2019/20, and £70 million ahead of previous guidance.
The upgraded guidance followed stronger sales in the run-up to the Christmas period as a 'strong revival in NEXT branded adult formal and occasionwear significantly improved sales throughout the final period,' the company said.
For the eight weeks to 25 December, sales were up 20% versus two years ago.
The company declared a further special dividend of 160p per share to be paid at the end of January 2022. Looking ahead to 2022, full price sales growth was expected to be 7.0% versus 2021/22.
'This headline growth rate represents +6.5% compound annual growth against 2019/20, which was the last year to be unaffected by COVID,' the company said.
'Our guidance reflects very strong growth in the first quarter (when stores were shut in 2021) and anticipates much weaker year-on-year growth in the last three quarters of 2022 as comparative numbers improved in 2021,' it added.