Next has increased its full-year profit guidance for the third time this year as sales and profits boomed during its first half.

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Next reported group sales were up 5.4% year on year

The fashion giant reported profit before tax of £420m for the six months to July 2023, up 4.8% compared with the same period in 2022.

Total group sales were up 5.4% year on year to reach £2.64bn during the period, while the retailer said its brand full-price sales also increased by 3.2%.

Next credited its sales performance during the half to “the exceptionally warm weather in late May and June”, which boosted sales of its summer ranges during “a critical time” of the year.

The retailer also said it expects to make an “exceptional gain” of £110m from its acquisition of fashion retailer Reiss.

Next said it has made “good progress” on its four priorities for the year across sales, service, costs and new and developing business streams, while overseas has taken “a big step forward” during the second quarter of the year.

In terms of guidance, Next said its full-price sales forecast for the second half would be up 2% on last year. The retailer’s profit before tax guidance has also increased by £30m to £875m.

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