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Next has updated its full-year guidance following an increase in total sales and profit before tax during the first six months of the year to July.
During the period, the retailer reported a 5.4% rise in sales to £2.6bn and a 4.8% increase in profit before tax to £420m.
Operating profit also increased by 5.1% to £456m compared to £434 for the same period in 2022.
As a result of the first six months, Next increased its full-year pre-tax profits guidance from £845m to £875m, up 0.5% compared to last year.
The full price sales guidance was also increased from 1.8% to 2.6%.
For the rest of the year until January 2024, the company is forecasting retail full price sales to be down 1.7% versus last year. It also expects to renew 73 leases and to close 11 mainline stores.
Looking further into the 2024/25 year, Next believes that inflationary pressures on selling prices and operating costs are likely to ease.
The retailer said: “So far this year, despite pressures on the cost of living, consumer demand appears to have defied gravity. One critical factor, we believe, has been the strength of the employment market. It has provided a degree of certainty and underpinned incomes, allowing consumers to increase their earnings through additional hours and new jobs.
“So whilst a softening of the labour market may reduce pressure on wage inflation, it may also somewhat dampen growth in consumer demand; a factor to bear in mind when thinking about the outlook for 2024/25.”
