Next raises profit forecasts as it defies gloomy UK weather to post bumper summer sales

Next has once again broken the pessimism in the retail sector by forecasting higher profits following excellent summer sales.

Sales rose 3.2 percent between April and June compared with last year, an unexpected boost for the fashion retailer.

The chain had estimated sales would fall 0.3 percent after a sunnier summer last year.

Competitors such as H&M have admitted that rainy weather this summer has slowed their Christmas fashion sales.

Next now has a majority stake in Reiss and that has helped defy the misery felt elsewhere.

It now expects profits to hit £980m this year, up £20m from the £960m forecast in the spring.

Tesco, Marks & Spencer and B&Q owner Kingfisher are the only other UK public retailers to have made £1bn or thereabouts in profits in a single year.

Clive Black, equity research analyst at Shore Capital, said the sales surge was “a very pleasant surprise for us.”

The update cements Next as one of Britain’s most trusted retailers, while boss Simon Wolfson has been praised for his leadership.

With inflation receding and the economy recovering, Wolfson said in March: “We seem to be entering a new era.”

Next shares rose 8.3 per cent, or 756 pence, to 9,830 pence yesterday and are up 40 per cent in the past year.