Next shares were surging on Thursday morning after the group produced a bumper festive trading period, despite concerns about the health of the UK consumer in the face of a cost of living crisis.
In the nine weeks to 30 December, Next sales rose 4.8% compared to the year prior, paying testament to Next’s strategy and the resilience of the UK economy.
Next were helped by plunging temperatures in December which saw sales jump after a fairly flat November.
“This is another impressive performance from the bellwether of the UK High Street, reinforcing Next’s reputation as one of the best run UK retailers,” said Charlie Huggins, Head of Equities at Wealth Club.
“The group benefited from a cold snap in December, which has boosted demand for winter clothing, as well as the absence of pandemic restrictions, aiding store performance. Nevertheless, this shouldn’t take away from Next’s stellar execution. Many other retailers have struggled in the current environment, but Next’s proposition is clearly resonating with the UK consumer.”
The results were robust enough for the Next board to increase full year profit before tax guidance by £20m to £860m.
Despite the strong festive period, Next were still cautious on the year ahead and said they expect profit before tax to be £795m in 2023, down -7.6% compared to this year.
Next shares were up 7.2% at 6,538 at the time of writing.