Next has reported record profits ahead of expectations as sales soared in the full year ending January 31, 2024.

Exterior-of-Next-store

The fashion giant’s profit before tax rose to a record high of £918m, up 5% from the £875m in profit the business reported in the previous year.

Total group sales increased 5.9% to £5.8bn during the same period.

Looking ahead, Next said its guidance is unchanged since its Christmas trading update as it expects profit before tax to grow 4.6% to £960m in the financial year of 2024.

Next chair Michael Roney said: “In the context of the wider economic environment, the year to January 2024 was a very good year for Next and the business materially outperformed our initial expectations. Next group profit before tax rose to a record high of £918m, up 5.0%. Cash flow remained strong and we returned £425m to shareholders through a combination of dividends (£248m) and share buybacks (£177m).”

The group also confirmed changes to its board as financial director Amanda James is set to leave the business after 28 years in July. She will be succeeded by Jonathan Blanchard, who was most recently the chief financial officer and chief operating officer of the Reiss Group, having joined Reiss as a board member in 2017.