British clothing company Next Plc has raised its profit forecast following better-than-anticipated sales in the Christmas period.
The company noted that the strength of demand for cold weather products in December was partly a result of pent-up demand from an unusually warm October and November.
In the nine weeks to Dec. 30, 2022, full-price sales were up 4.8% versus last year.
The company now expects FY2023 group profit before tax to be £860 million, a 4.5% year-on-year growth.
Full-year full-price sales will likely rise by 6.9% Y/Y to £4.6 billion.
Next anticipates the cost price inflation on like-for-like goods to peak at around 8% in the Spring Summer season, which will ease to 6% in the second half.
The clothing retailer said it is cautious about the financial year ending January 2024 and said its pretax profit would likely decline 7.6%.
Inflation in essential goods, particularly energy, and rising mortgage costs will dampen demand in the year ahead, Next said.
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