Next to reveal £1bn profit as it challenges retail pessimism to report bumper sales

Next profits will surpass £1bn for the first time as it once again defies the retail blues with bumper sales.

In another boost for boss Lord Wolfson, the High Street stalwart raised its profit target for the year by £10m from £995m to £1.005bn.

It was the third improvement in three months and the shares rose 1.1 per cent, or 115 pence, to 10,185 pence.

Only three British retailers – Tesco, Marks & Spencer and Kingfisher, which owns B&Q – have recorded profits of £1bn or more. Next up is a battle with JD Sports to become the fourth company to do so.

JD recently said it was on track to make profits of between £955m and £1.035bn this year.

Next’s update came as it said sales in the three months to October 26 were 7.6 per cent higher than the same period a year earlier. He

The company said an “early arrival” of colder weather prompted shoppers to rush into autumn ranges.

This was compared to an “unusually warm” September and early October in 2023.

Annual sales will rise 4.9 per cent to £5.02bn after beating third quarter expectations.

Clive Black, equity analyst at Shore Capital, said: “No amount of modesty or caution changes the fact that this is shaping up to be a bumper year for Next.”

The critical “golden quarter” for retailers is underway, with rivals such as M&S and Primark also hoping for a bumper Christmas.

Next has expanded its offering of third-party brands after buying stakes in brands such as Joules, Reiss and FatFace.

It is driving international growth having signed deals with Indian fashion retailer Myntra and US department store Nordstrom.

Wolfson has been praised for his careful leadership and his comments on the health of the economy are closely watched. He is known for making cautious forecasts and then exceeding them.

When he took over, aged 33, he was the youngest boss of a FTSE 100 company.

Wolfson, who celebrated his 57th birthday on Sunday, is a conservative peer as is his father, David, former chairman of Next.

Aarin Chiekrie, equity analyst at brokerage Hargreaves Lansdown, said: “These results highlight that Next remains a shining example of how to execute well in what is a competitive space. But retail is a fickle sector.”