Next has raised its revenue forecast for the fifth time in lower than a yr after reporting better-than-expected gross sales within the run-up to Christmas.
The excessive avenue retailer stated full-price gross sales had been up 5.7% within the 9 weeks to 30 December in comparison with final yr.
The determine, revealed in a buying and selling replace from the agency on Thursday, is £38m higher than the two% rise it beforehand forecast for the interval.
As a outcome, Next stated it was upgrading its pre-tax revenue steering for 2023/24, not together with distinctive gadgets, by £20m to £905m.
That would symbolize a 4% rise on the £870m it made in 2022/23.
The chain, which has round 460 shops within the UK and an internet presence in dozens of nations overseas, reported notably robust web site gross sales, which elevated 9.1% within the 9 weeks to the tip of final month.
Next stated it expects full-price gross sales to rise 2.5% in 2024/25, and pre-tax revenue to extend by 5%.
The firm stated rising wages had been more likely to ease value of dwelling pressures on consumers within the new yr, whereas it additionally goals to not rise costs for like-for-like items because of falling manufacturing prices.
Its buying and selling replace stated: “On the face of it, the consumer environment looks more benign than it has for a number of years, albeit there are some significant uncertainties.”
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Risk components recognized by Next for the brand new yr embody a possible rise in unemployment which may hit gross sales.
The chain additionally cautioned that rising tensions ensuing from the Israel-Hamas battle and assaults on transport within the Red Sea may hit its provide chains.
“Difficulties with access to the Suez Canal, if they continue, are likely to cause some delays to stock deliveries in the early part of the year,” the buying and selling replace warned.
Charlie Huggins, a supervisor at funding agency Wealth Club and a Next shareholder, stated the corporate had “pulled yet another rabbit out of the hat” and claimed the figures “demonstrated once again why it is considered one of the best run retailers around”.
He added: “Next’s core proposition is clearly resonating with the UK consumer and is being augmented by intelligent acquisitions of brands like Fat Face.
“With inflation falling and wages rising, the financial image additionally seems so much much less bleak than at first of final yr.”
Shares in Next leapt by greater than 5% in early buying and selling on Thursday following the buying and selling replace.
Source: information.sky.com”