Next has raised its profit guidance for the full year after a good performance over the Christmas period.
Profit before tax for the 12 months to 27 January 2024 is now expected to be around £905m, up £20m from the previous estimate and an increase of 4% compared to the prior year.
In a trading update, the high street fashion retailer said that full-price sales in the nine weeks to 30 December were up 5.7% versus last year. This was £38m better than its previous guidance for the period.
Stock has also been well controlled, with the retailer going into its end-of-season sale with 12% less surplus stock than last year.
Full-price sales for the financial year are expected to increase by 4% to £4.78bn.
In its outlook for the year ahead, Next warned that deliveries of stock could be delayed in the early part of the year if disruption to shipping in the Red Sea continues.
The largest cost increase is expected to be wage inflation, which is estimated at around £60m.
