British fashion stalwart Next expects a pre-tax profit of $388 million for 2020. Notably, the midpoint of Next’s earlier forecast was $252 million. This is the second time the retailer has raised its outlook since the pandemic. In April 2020, its worst-case scenario was loss of $194 million and its midpoint was for no earnings. It further upgraded the outlook in July following reopening of stores.
Despite the pandemic crisis, the retailer’s sales continue to be better than expected and a major part of this owes to cooler weather in August that has made people come out and shop for autumn dresses.
Additionally, with restrictions imposed on foreign travel, domestic apparel sales have got a huge boost in the UK.
However, Next has warned that the strong sales witnessed ever since the stores reopened may not continue for long. The Government’s wage support programme, which may end in October, could hit the sales again.