Next Plc, the British clothing and homeware chain, raised profit guidance for the fourth time in recent months after sales in its third quarter grew more than expected.
The retailer boosted its full-year forecast for profit before tax by £10 million ($12 million) to £885 million, in an earnings update Wednesday. Full-price sales rose 4 percent from August through October, £23 million ahead of its previous expectations.
Shares rose 3.6 percent in early trading. The stock has climbed by around a fifth since the start of the year.
Considered a bellwether for the health of Britain’s high-street retailers, Next had a strong performance as inflation-linked pay rises prompted people to buy more clothes. Unseasonably warm weather during autumn led to sales being volatile on a weekly basis, but they picked up in the second half of October when Britain was hit by a major storm.
Next has become a force to be reckoned with in UK retail. Last month the retailer purchased clothing brand FatFace for £115 million, joining a string of recent acquisitions that include fashion label Joules, homeware brand Cath Kidston and online furniture store Made.com. Next has also strengthened its control over UK fashion house Reiss.
By Katie Linsell
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Next Raises Profit Outlook on Better Weather, Consumers’ Wage Hikes
British fashion retailer Next raised its sales and profit guidance for the year, saying trading had exceeded expectations on the back of warmer weather and a wages boost for consumers, sending its shares higher.
