Next has raised its full-year profit outlook once again after reporting a better-than-expected Christmas trading.
Full price sales rose 10.6% in the nine weeks to December 27, up 5.9% in the UK and 38.3% internationally.
The retail bellwether said the “over-achievement” and additional sales forecast in January adds £51m to the group’s revenues for the year.
As a result, Next is expecting its pre-tax profit to come in £15m higher than its previous forecast at £1.15bn. This will be 13.7% higher than last year.
Looking ahead, Next said it expects growth next year to be lower due to tough UK comparatives in the first half following “very favourable summer weather, competitor description and improved stock levels”.
It is forecasting a 4.5% growth in total full price sales for the year, less than half the 10.7% increase in the current year.
Online and retail sales in the UK are expected to edge up 1.6%, compared to the current 6.6% growth, which it attributed to continuing pressures on employment filtering through the consumer economy.
The retailer added that growth from its overseas direct websites is “likely to moderate from the exceptional levels achieved this year”, with a 16.5% uptick forecast for next year.
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