Next benefits from warm weather and Royal Wedding

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Next has announced better than expected first quarter sales figures with sales from its stores and catalogue rising by 5.2% between the start of February and the end of April.

As a result, the retailer said that it now expected pre-tax profit to be in the region of £535 million and £585 million. This is £15 million more than predicted in March.

Next said it estimated that at least 2.5% of the over-performance came as a result of warm weather over Easter as consumers brought forward summer purchases. It also benefitted from increased spending in the build up to the Royal Wedding. However, it did not expect the current levels of growth to continue into the second quarter and anticipated that total Next Brand sales for the first half would be in the range +1.5% to +4%.

The retailer said: "Despite the strength in recent sales, we remain cautious for the full year given that there has not been a significant change in the underlying economic environment. The combined effects of the public sector deficit cuts and continued inflation in essential commodities are all likely to restrain growth in consumer spending generally."

Next also warned that its prices were likely to rise by 8% in the second half of 2011 due to the rising cost of raw materials.

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