Profits set to approach £1bn as Next upgrades forecast again

Next, the Enderby retail giant, has upgraded its full-year profit forecast after a storming first six months of its financial year.

The company saw total group sales up 8% on last year and profit up 7.1% to £452m.

Next says it now expects full year group sales to be up by 6.6% and its full year pre-tax profit up by £15m to £995m.

The company has been further boosted by a strong first six weeks of its second half of the year, with sales up by 6.9%.

However, there was some “potentially worrying” news for Next’s UK business, which actually shrank by almost 1% during the first half.

A statement from Next said: “We believe the underperformance was mainly because our fashion ranges did so well during the exceptionally warm weather last year. The sharp recovery in the last six weeks, as weather comparatives have materially turned in our favour, is confirmation of this theory.”

Next’s overseas business more than made up for this, with sales rising by 23% during the first half.

Next’s share price closed at £103.35 on Wednesday (September 18).