Next performed better than expected over the Christmas period and has increased its profit outlook as a result, painting a positive picture for retail over the Christmas period.
Sales were up nearly 5% in the nine weeks to 30 December on the same period in 2021, far outpacing the 2% reduction the retailer had forecast and £66m better than expected.
As a leading high street retailer, Next is seen as a bellwether for the retail sector.
The company upped full-year profit before tax guidance by £20m to £860m, up 4.5% on 2021 but said it remains “cautious” in its “outlook for the year ahead”.
The cold weather is behind some of the “dramatic boost to sales”, Next said in a trading update.
“We believe that the strength of demand for cold weather products in December was partly a result of pent-up demand from an unusually warm October and November.”
But the picture is looking gloomier for the coming year. Full price sales are…
