Next has reported better than expected sales in the Christmas period after a “dramatic boost” from a change in the weather.
In the nine weeks to 30 December 2022 the retailer’s full-price sales were up 4.8% compared with the same period a year ago. Next had previously forecast a 2% reduction in sales.
“We believe that the strength of demand for cold weather products in December was partly a result of pent-up demand from an unusually warm October and November,” the company said in a trading update.
This year, Next expects higher energy bills and mortgage rates to impact customer demand.
With the retailer facing its own rising costs, shoppers will see prices rise by around 8% in the spring/summer season and by around 6% in autumn/winter.
Next’s initial guidance for the coming 12 months is for full-price sales to fall 1.5% and profit before tax to drop 7.6% to £795m.
