The Next fashion chain said sales were up marginally in August, September and October, despite the big problems facing the 海角视频 high street.
As the cost of living crisis bites the 海角视频 retail giant said year-on-year sales were up 0.4 per cent for the period – slightly ahead of initial expectations. September in particular saw a decent trading.
In-store sales for the period were 3.1 per cent up on last year while online sales were almost 2 per cent down.
The Leicestershire-based group said it still expects to hit profits of £840 million for the year, which would be 2.1 per cent up on a year before.
In a short trading update the business said: “Full price sales in the last five weeks have been up 1.4 per cent, boosted by one particularly strong week at the end of September, when temperatures dropped and sales of heavier weight products improved.”
Back in September Next downgraded its profit forecasts for the year from a previous projection of £860 million after a weak August.
Then the business had said it seemed “inevitable” that growth in the clothing and homewares sector would slow or even reverse as rising prices for everything from the food and mortgages to gas and electricity started to bite.
Analysts fear worse is yet to come at Next Plc
Charlie Huggins is head of equities at Wealth Club, which gives wealthy individuals information on investment opportunities not typically available through mainstream stockbrokers or financial advisers.
He said: "After Next cut its sales and profit forecasts five weeks ago, the fact it is maintaining guidance today comes as a relief.
“However, this reasonable progress masks considerable weekly volatility.
"The last week of September shows sales up a stellar 11 per cent, but in the middle of October sales fell by 3.7 per cent.
"An element of sales volatility is to be expected for any retailer, with weather always playing a part. Even so, these are quite large fluctuations and may say something about the fragile state of the economy.
"The uncertain economic backdrop is underlined by Next's caution for the remainder of the year, with the group expecting sales to fall by 2 per cent.
"Bear in mind that includes perhaps high-single digit price increases, so volumes are quite weak.
"Unfortunately, the worst is probably still to come. Inflationary pressures and higher interest rates will really start to bite next year, especially as home owners come to remortgage.
"Next looks better positioned than most of its peers to weather the storm, in light of its high margins, robust cash flows and strong balance sheet.
"But 2023 could be a very difficult year the way things are shaping up."
Julie Palmer, a partner at professional services consultancy Begbies Traynor, said: “Back in September, Lord Wolfson cut guidance thanks to tougher trading conditions in the second half.
“This morning, he must be pleased that trading has stabilised enough for the clothing and homeware giant to maintain the reduced forecasts for the full year.
“With bricks and mortar stores up and down the country and a strong online presence, Next is better placed than the pure-play online retailers but the near-term future is definitely not going to be smooth sailing.
“While the high street stalwart has been able to hedge against currency fluctuations up until next summer, the pound’s weakness isn’t going to be a flash in the pan. This means imports are going to get more expensive unless Next can rework its supply chain but that will take time.
“On top of that, energy and labour costs are only going in one direction, so one has to question whether price increases are on the cards.
“If that does happen, customers who are already counting the coppers might think twice before refreshing their wardrobe or jazzing up their living rooms.”
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Finance director Amanda James told the PA news agency at the time: “These were fed through from August and if we had seen the weakness that month continue to September maybe you could link the performance to prices.
“But I think the improvement in September proves it is not simply that and we saw a strong performance in the first half of the year, where we had implemented 4 per cent price increases.”