Next has raised its full-year profit guidance by £12 million to £1.255 billion, after a first half that outpaced the retailer's own expectations.
The upgrade came as the FTSE 100 clothing and homewares group, run by Lord Wolfson, reported trading it described as much better than anticipated, both at home and abroad.
Pre-tax profit for the six months to July rose 10.5% to £569 million, while total group sales climbed 9% to £3.54 billion.
Earnings per share jumped 12.2% to 370.4p, and the group's pre-tax net margin edged up 0.3 percentage points to 16.1%, showing that growth had not come at the cost of profitability.
Where the upgrade came from
Of the £12 million added to guidance, £5 million reflects higher expected sales and £7 million stems from cost savings, chiefly in warehousing.
The revised figure puts full-year profit 8.4% ahead of last year, on total group sales guided at £7.5 billion.
Abroad shines, home cools
The international arm did the heavy lifting, with online sales overseas up 23.9% in the first half, prompting Next to lift its full-year international guidance by £40 million to growth of 20.5%.
The domestic picture was cooler, as UK retail store sales slipped 1.7% and the company trimmed its second-half UK growth forecast from 2.8% to 2%.
Next said it did not expect a sharp drop in spending, but rather a slow, steady decline as the year wears on.
Wolfson's warning
Lord Wolfson used the results to sound a now-familiar note of caution on the UK economy, pointing to rising inflation, higher mortgage costs and a weak jobs market.
He warned that the tax burden was at its highest level in more than 60 years, and that further rises risked stifling growth ahead of the Chancellor's Budget in October.
Next noted that the government is forecast to spend more than £100 billion beyond its income this year, leaving little room to stimulate the economy or ease pressure on households.
The company argued that higher taxes on investment would deter capital, reduce growth and ultimately hurt employment, a concern it says its earlier warnings on jobs have already borne out.
For now, though, the numbers are doing the talking, and they are pointing firmly upwards.
