Next delivers one other increase to revenue forecasts after bumper Christmas

Next has raised its profit forecast again after a bumper Christmas that saw it defy the gloom on the High Street.

The fashion retailer announced its fifth upgrade in twelve months after sales came in £51m higher than anticipated.

UK sales in the nine weeks to December 27 were 10.6 per cent higher than a year earlier, which it put down to having more stock after shipping delays.

Sales in the UK grew by 5.9 per cent – which was slower than last year but better than the 4.1 per cent growth that had been predicted.

‘We believe that sales benefited from higher stock levels than last year, when supplier deliveries were delayed by disruption in Bangladesh and global freight networks,’ the update said.

Lord Wolfson, whose insights into the UK’s economic health are closely watched, has steered Next since 2001. In that time sales have soared, as many have struggled.

Lord Wolfson warned sales growth in the UK will slow this year as the job market weakens

Claire’s and The Original Factory Shop became the latest retailers to enter administration last night.

But Next warned growth would be slower next year as ‘continuing pressures on UK employment are likely to filter through into the consumer economy as the year progresses.’

The group has also benefited this year after a cyber attack crippled its rival Marks & Spencer’s website orders and caused disruption in shops.

This sent shoppers in the direction of competitors, including Next, which sells many of the same third-party brands online. 

M&S expects a £300million dent to profits this year.

By contrast, Next expects £15m in extra profits, meaning that they will pass £1.15bn for the year.

Next shares climbed 3.1 per cent in early trading today, adding 420p to 14,010p. 

The group is thought to be eyeing a rescue of fashion brand LK Bennett, whose dresses have been worn by the Princess of Wales.

Next has a record for scooping up brands of collapsed retailers, such as FatFace and Joules. It bought maternity fashion brand Seraphine last year.

Adam Vettese, market analyst for eToro says: ‘Next has delivered another resilient Christmas performance, underscoring its position as one of the UK high street’s strongest operators. 

‘Increased full price sales and disciplined stock management continue to support solid cash generation, and management’s controlled guidance reinforces confidence in the group’s operational grip.’