Next has increased its full-year profit guidance for the fourth time in six months despite the warm weather putting off shoppers.
The retailer said it now expects profits of £885million for the year to the end of January.
This is £10million more than it outlined in September and a far cry from the subdued year that it anticipated at the start of 2023.
The profit bump came after sales climbed 4 per cent year-on-year in the three months to the end of October – double the pace of growth expected.
Online shopping was a particular bright spot, jumping by 6.5 per cent compared to last year, while store sales dipped 0.6 per cent.
Resilient: Next has hiked its full-year profit guidance for the fourth time in six months and now expects profits of £885m for the year to the end January
Next largely blamed this tumble on the unseasonably warm weather in Britain putting consumers off buying jumpers and jeans for the winter.
The FTSE 100 group said: ‘We believe the volatility in sales performance is a result of changing weather conditions rather than any underlying changes in the consumer economy.
‘In an autumn season cooler weather is good for sales, warmer than average weather depresses sales.’
But with Next able to perform under such unfavourable conditions, shares rose 3.6 per cent, or 248p, to 7132p.
Others have not fared so well.
Troubled online fashion group Asos yesterday warned of a sharp slide in profits and widening losses.
And high street rival H&M last month said sales wilted in the September sun.
Profit bump: Boss Simon Wolfson said Next’s appeal has broadened
Recent figures from the Office for National Statistics also showed retail sales fell sharply in September.
Richard Hunter, head of markets at Interactive Investor, said: ‘Even within a brief trading statement, Next was able to pack the punch that it is increasing its profit estimate for the fourth time this year.
‘The shares are certainly on a roll given its recent ability to confound expectations.
Next has long been regarded as a well-oiled machine with the determination to drive progress, and a recent upgrade of the market consensus to a cautious buy reflects warming appreciation of its prospects.’
Next has around 460 stores in the UK and Ireland and has an online presence in over 70 countries.
Unlike its digital-only rivals such as Asos and Boohoo, Next has been able to cash in on people returning to shops.
Often considered a bellwether for the health of Britain’s High Street, Next has also been aggressive with its growth and has bought up beleaguered rivals such as Joules and Cath Kidston in recent years.
It recently snapped up clothing brand Fatface, along with its 180 UK stores, in a deal worth over £100million.
It has also been buying stakes in other retailers such as JoJo Maman Bebe and Reiss in order to expand its online business.
These firms pay Next for its online logistics and operations.
Next chief executive Simon Wolfson has said adding more items from varied brands is helping to broaden its appeal to different shoppers – a strategy that the likes of M&S has also been adopting.
John Stevenson, analyst at Peel Hunt, said: ‘While the quarter says more about weather patterns than the consumer, Next’s relevance and offer remains on-point.’
