Next Plc, the British clothing and homeware chain, raised profit guidance for the fourth time in recent months after sales in its third quarter grew more than expected.
The retailer boosted its full-year forecast for profit before tax by £10 million ($12 million) to £885 million, in an earnings update Wednesday. Full-price sales rose 4% from August through October, £23 million ahead of its previous expectations.
Shares rose 3.6% in early trading. The stock has climbed by around a fifth since the start of the year.
Considered a bellwether for the health of Britain’s high-street retailers, Next had a strong performance as inflation-linked pay rises prompted people to buy more clothes. Unseasonably warm weather during autumn led to sales being volatile on a weekly basis, but they picked up in the second half of October when Britain was hit by a major storm.
Next has become a force to be reckoned with in UK retail. Last month the retailer purchased clothing brand FatFace for £115 million, joining a string of recent acquisitions that include fashion label Joules, homeware brand Cath Kidston and online furniture store Made.com. Next has also strengthened its control over UK fashion house Reiss.
Read More: A Lord and a Billionaire Battle for the Future of UK Retail
--With assistance from Irina Anghel.
(Updates with share price and additional information from the third paragraph.)
