Next has raised its full year profit guidance for the third time this year, rising from £845m to £875m after the high street stalwart was bolstered by soaring sales in the half year to July.
The retail behemoth said that total group sales grew by 5.4 per cent to £2.6bn, as the group was helped by sunny weather in June and July which increased consumer spending.
Next’s profit before tax also surged 4.8 per cent to £420m and full price sales rose to 3.2 per cent as the company rolled out new fashion lines which appealed to customers.
Looking ahead to the next year, the retailer said it is likely that inflationary pressures on selling prices and operating costs will continue to ease.
“In reality, we were overly cautious about the prospects for sales in the current year, we underestimated the support nominal wage increases, and a robust employment market, would give to our top line,” the retailer said.
“Sales are better than expected; Online service has significantly improved; costs are lower than expected and, although it is early days, and there have been bumps along the road, all three streams of new business are showing signs of promise.”