Next profits will surpass £1billion for the first time as it once more defies retail gloom with bumper sales.
In another boost for boss Lord Wolfson, the High Street stalwart raised its profit target for the year by £10million from £995million to £1.005billion.
It was the third upgrade in three months and shares rose 1.1 per cent, or 115p, to 10185p.
Profits boom: Next boss Lord Wolfson (pictured) is known for making cautious forecasts and then exceeding them
Just three British retailers – Tesco, Marks & Spencer and B&Q-owner Kingfisher – have recorded profits of £1billion or more. Next is in a battle with JD Sports to become the fourth company to do so.
JD recently said it was on course to make profits of between £955million and £1.035billion this year.
The upgrade from Next came as it said sales in the three months to October 26 were 7.6 per cent higher than the same period a year earlier. The
company said an ‘early arrival’ of colder weather prompted shoppers to rush to buy autumn ranges.
This was compared to an ‘unusually warm’ September and early October in 2023.
Annual sales will rise 4.9 per cent to £5.02billion after exceeding third-quarter expectations.
Clive Black, equity analyst at Shore Capital, said: ‘No amount of modesty or caution changes the fact that this is shaping up to be an excellent year for Next.’
The critical ‘golden quarter’ for retailers is under way, with rivals including M&S and Primark also hoping for a bumper Christmas.
Next has expanded its offering of third-party brands after buying stakes in labels including Joules, Reiss and FatFace.
It is pushing for international growth having signed deals with Indian fashion retailer Myntra and US department store Nordstrom.
Wolfson has been praised for his careful leadership, and his remarks on the health of the economy are closely watched. He is known for making cautious forecasts and then exceeding them.
When he took over at the age of 33, he was the youngest boss of a FTSE 100 company.
Wolfson, who celebrated his 57th birthday on Sunday, is a Conservative peer as was his father, David, who was formerly chairman of Next.
Aarin Chiekrie, an equity analyst at broker Hargreaves Lansdown, said: ‘These results highlight that Next continues to be a shining example of how to execute well in what is a competitive space. But retail is a fickle sector.’
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