International Orders Boost Next's Directory Sales

International orders at clothing retailer Next have boosted Directory sales and will help lift full year profit, the retailer said this morning.

Directory directory business increased 8.3 per cent to 597.6 million. International sales contributed 2.9 per cent of the total rise, about a third of the growth, and overseas sales are expected to approach £100 million in the full year.

Online contributed to an overall sales rise of 2.2 per cent at the firm after one of the coldest Springs on record held back growth.

'International sales have taken a step forward in the last six months. Much of this improvement has been driven by our ability to reduce operating costs which have in turn been passed on to customers by way of price reductions. In the territories where we have reduced prices we have increased both sales and profits,' Next said in a statement.

The retailer said it has revised its estimate for full year international online sales from £75 million to £90 million (see graph below). It said net profit on international sales has been maintained at around 20 per cent of sales.

Next said pre-tax profit in the first half to July increased 8.2 per cent to £271.8 million. 

Sales at its 541 stores declined 0.9 per cent in the period. Next said it expects to renew a large number of store leases with better terms in the coming years.