Next Increases Full-Year Outlook as Warm Weather Boosts Sales

LEICESTER, United Kingdom — Next Plc, the U.K.'s second-largest clothing retailer, increased its outlook for full-year sales and profit after first-half revenue exceeded expectations.

Pretax profit for the year through January will be in a range of 805 million pounds ($1.3 billion) to 845 million pounds, Leicester, England-based Next said in a statement Tuesday. That compares with its previous forecast of 785 million pounds to 835 million pounds. For sales, the company forecast growth of 3.5 percent to 6 percent for full priced items, up from a prior forecast of 1.5 percent to 5.5 percent.

Warmer weather in the U.K. boosted revenue toward the end of the second quarter, the retailer said. Sales under the Next brand — incorporating both shops and the Directory home-shopping service — rose 3.5 percent in the first half.

As Next shares remained above its buyback price limit during the second quarter, the company said it will pay a special dividend of 60 pence per share on Nov. 2.

By Sam Chambers, Paul Jarvis; editors: Matthew Boyle, James Boxell.