UK's second big clothing retailer posts better sales.
UK's second largest clothing retailer posts better sales.

Britain's second largest clothing retailer, Next, reported improved sales growth in the second quarter owing to better weather and stronger spending by consumers and business.

The fashion retailer posted increase in total sales by 2.3% in the 26 weeks till 27 July, higher than the first quarter growth of 2.2%.

The company projected improved group profit for the year from £635m to £675m with the pre-tax growth lying between 2.2% to 8.6% better than its previous negative figure. Also the growth in earnings per share increased 8-15 % from 4-13% previously.

"We continued to experience the weekly sales volatility which we saw in the first quarter. It would appear that consumers are becoming more spontaneous in their purchasing habits. We expect little change to the consumer environment. If we are within this range, then sales for the full year would be in the range of 1.5% to 3.5%," the company said.

The company has about 200 stores across the globe with 500 stores in Britain and Ireland. It also trades through its Directory internet and catalogue business.

Flourishing Growth

Next, could avoid a sluggish growth with the support of its strong online business boosted by several offers, along with multiple openings of new stores from time to time and diversification into homewares and in overseas markets.

Company projected drop in sales in store by 0.9% where as the Directory sales showed surge by 8.3%.

Retailers in UK have been going through a tough time due to the uncertainty prevailing in terms of job security and low income by consumers who contributes two-thirds of Britain's gross domestic product. Although recently data showed that the Britain's economy has been improving.

According to official statistics released last week, Britain's economy has picked up growth between April and June this year.

Home-improvement retailer Kingfisher, which owns DIY chain B&Q, also posted improved sales in the second quarter following a long spell of sunny weather.