• Next reported profit before tax of £401 million.
• The group’s full-year pre-tax profit fell by £20 million to £840 million.
• Next shares fell 9.8%.

Next, a fashion and homewares retailer reported its half-year earnings on Thursday, which saw the company slash its guidance for the second half of the year.

The group reported that profit before tax increased 16% to £401 million. Meanwhile, brand full-price sales increased by 12.4%. The company stated they had a good first half, with overall sales ahead of expectations.

However, Next saw August trade below expectations, and the cost of living crisis is set to rise over the coming months.

Sales in September had improved, according to Next. However, Next reduced its full-price sales in the second half from 1% to -1.5%.

In addition, the company reduced its profit guidance for the full year from £860 million to $840 million, up 2.1% compared to the prior year.

Next shares have tumbled 9.8% following the report.

Furthermore, Next is not the first fashion retailer to cut guidance this week, as Boohoo recently reported they expect revenue to fall and lowered its outlook on EBITDA.