Next joins the £1bn club: That's how much profit the retailer expects to make this year - despite the gloom on the High Street
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Next is on course to rake in profits of more than £1billion for the first time as it defies the gloom on the High Street. In an upbeat Christmas trading statement to the City, the retailer's chief executive Lord Wolfson raised his profit forecast for the year by £5million to £1.01billion.
It was the ninth upgrade in two years – cementing Wolfson's reputation as a boss who under-promises and over-delivers, and shares rose 3.8 per cent. 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. The upgrade from Next came as it said sales in the nine weeks to December 28 were 6 per cent higher than the same period a year earlier. Top job: Next's chief exec Lord Wolfson is the FTSE 100’s longest-serving boss with a reputation for who under-promising and over-delivering.
This was better than the 3.5 per cent increase that the High Street fashion business had previously suggested. And Next said it is on course for total sales for the 12 months to its financial year end on January 25 to rise 7.8 per cent to £6.3billion.
David Hughes, an analyst at Shore Capital, said Next 'remains a stand-out in terms of excellent retail operations' despite the uncertain economic backdrop. Russ Mould, investment director at broker AJ Bell, said: 'While many retailers complained about the rotten British weather, a weak economy or political uncertainty in 2024, the FTSE 100 firm has got on with the job and now raised guidance for both sales growth and profits on no fewer than nine occasions in the past two years.'.
