Next has defied the subdued Christmas trading trend and nudged up its profit guidance after sales beat forecasts but warned of price rises to offset a £67 million increase in wage costs after the budget.
The clothing and home retailer kicked off the crucial peak trading reporting season with a 6 per cent increase in full-price sales in the nine weeks to December 28, driven by strong online and overseas growth. City analysts had expected a 4.5 per cent rise.
Underlying full-price sales rose 5.7 per cent against the previous year, which compares with its previous guidance of 3.5 per cent for the period.
This added £27 million to full-price sales, increasing full-year guidance for pre-tax profit in the year to January 25 by £5