Next sales boosted by warm weather – and the FTSE 100 listed retailer has seen its share price rise 24% in the past year

Retailer Next says sales have been better than expected, with the company revealing a boost due to warm weather.

It revealed that pre-tax profits rose 4.8 per cent to £420m for the six months to July, compared with the same period last year.

The FTSE 100 company also saw total sales rise by 5.4 per cent with exceptionally warm weather in late May and June boosting sales of its summer clothing at a critical time, the group said.

Following the results, the high street chain raised its full-year profit forecast for the third time, from £845m to £875m.

Richard Hunter, head of markets at Interactive Investor, said: ‘Next has long been seen as a well-oiled machine and is clearly determined to drive progress.

‘The combination of lower costs and an online offering that continues to thrive underpins financial performance and bodes well for the future development of the offering as a whole.

“The shares have more recently seen the benefit of rising expectations, having risen 24 per cent over the last year, compared with a 6.8 per cent gain for the broader FTSE 100.”

Earlier this month, the group revealed it had joined forces with the Reiss family to acquire a significant stake in the Reiss Group.

The two sides have agreed to spend £128 million to buy a 34 per cent stake in the luxury clothing chain – whose fans include the Duchess of Cambridge – from US private equity giant Warburg Pincus.

Once the deal closes, Next will have increased its stake in Reiss Group from 51 percent to 72 percent, while the Reiss family will own a 22 percent stake and the remainder will be held by Reiss management.

Hunter added: “However, the two-year performance remains negative, with shares still down 12 per cent and some way off the peak of £81 reached in November 2021.

“Still, Next has once again demonstrated its credentials for current and future growth, and the market consensus on the stock as a strong holding could well be subject to some upward revision.”

Next actions They rose 2.3 percent to 7,270 pence in morning trading on Thursday.