Next PLC (LSE:NXT) maintained its full-year profit forecast despite a strong third-quarter performance.
The clothing retailer said it beat its profit estimate by £4mln, which it is investing in digital marketing and spending on “inbound air freight and other online distribution costs”.
It now expects full-year profits of around £800mln – in line with the current City consensus of £801.1mln.
Full-price sales for the 13 weeks to October 30 were up 17% on pre-pandemic levels and ahead 14% since the last update, beating guidance on the latter by four percentage points.
The high street giant’s online performance stood out, with 40% growth in the quarter and a 49.5% increase year to date compared with 2019/20 levels.
While the numbers looked good, there was an inflation warning that echoed updates from a number of consumer-focused businesses during the third-quarter earnings season.
“Although consumer finances are in good shape, price increases in essential goods (such as fuel) may moderate demand for more discretionary purchases,” investors were told.