Next has recorded an increase in full-price sales over the festive period ahead of internal expectations, spurred by online, and has upped its full-year guidance as a result.

The fashion retailer posted a 5.2% uplift in full-price sales including interest in its fourth quarter, which covers the period from October 27 to December 28, and represents an increase in revenue 1.1% ahead of internal forecasts.

As a result, Next has raised its full-year profit guidance by £2m to £727m, up 0.6% on the previous year.

The fashion retailer has also increased its full-year sales growth forecast 0.3% from guidance given at its third-quarter update in October. It now expects full-price sales to be up 3.9% year on year.

The retailer’s full-price retail sales were down 3.9% in the quarter and 4.6% in the year to December 28.

By contrast, online sales rose 15.3% in the quarter and 12.1% in the year respectively.

Next said its clearance rates to date have been “slightly lower than our expectations”, with stock put into its end-of-season sale including Black Friday down 2.9% year on year.

The fashion retailer forecasts that its profit in the coming financial year will be up 1% year on year, while full-price sales will increase 3%, aided by a 53-week financial period.