RETAILER Next has shrugged off cost-of-living concerns as the high street giant revealed it was buoyed by improved full-price trading and a strong end-of-season sale in the latest quarter.
The fashion chain upgraded its profit target as a result.
The retailer, which runs 466 stores across the UK, reported that full-price sales increased by 6.9 per cent over the 13 weeks to July 29, compared with the same period last year.
It comes after the firm told shareholders in June that it had seen better-than-expected sales as it benefited from "exceptionally warm weather".
Next said full-price sales over the six weeks since the previous update grew by 3.7 per cent against the previous year, taking in £16 million more in sales than expected.
Nevertheless, it represented a slowdown from the start of the quarter amid damper weather last month.
The retailer said strong sales over the past quarter included a 10 per cent jump in online trade with a 2.2 per cent increase for stores.
It also reported that its end-of-season sale "has gone well" and said it cleared more stock than expected.
As a result, Next increased its pre-tax profit guidance for the current financial year by £10 million to £845 million.
Despite the improved performance, Next held its sales forecast of 0.5 per cent growth for the second half of the financial year.
It said this would put the firm on track for a 1.8 per cent increase for the year as a whole.
Jefferies analyst James Grzinic said: "This self-evidently assumes a reducing willingness by consumers to spend their improving disposable income."
