High street behemoth Next has once again raised its profit forecast, showing optimism as the crucial Christmas period approaches and dismissing worries about pressures on consumer finances.
Shares in the company, which operates approximately 900 stores, saw a surge on Wednesday morning following this announcement.
Next, often regarded as a bellwether for the º£½ÇÊÓƵ high street, anticipates that sales during the festive quarter will significantly exceed previous estimates.
The company predicts full price sales to increase by roughly 7% in the quarter leading up to January, an upgrade from the previously projected 4.5%.
However, this still indicates a minor deceleration compared to the previous quarter, with the retailer also forecasting a slight easing of º£½ÇÊÓƵ sales growth.
This update comes as Next reported that total full-price sales rose by 10.5% over the 13 weeks to 25 October, compared to the same period last year.
In the º£½ÇÊÓƵ, sales increased by 5.4% over the quarter, with a 7.8% rise in online sales partially offset by a 2% growth in store sales, exceeding expectations despite recent warnings about the consumer landscape.
Meanwhile, overseas sales soared by 38.8% for the quarter.
Next informed investors that it expects to deliver a pre-tax profit of around £1.135 billion for the year to January, raising its guidance by approximately £30 million.
This marks the latest profit upgrade from the company, following a similar adjustment in July.
Julie Palmer, partner at Begbies Traynor, commented: "Next has once again proven why it's the gold standard in º£½ÇÊÓƵ retail.
"With guidance lifted and healthy sales growth both at home and abroad, the retail giant's winning formula of tight cost control, effective stock management and a well-balanced online and store offer is clearly paying off.
"At a time when many retailers are feeling the squeeze from rising costs, weak consumer confidence and uncertainty around the next Budget, Next appears largely immune to such pressures."
