Shares in Next surged yesterday after a knockout trading update suggested that shoppers are defying the economic gloom.
The High Street chain, which has around 900 shops, reported a stronger-than-expected 10.5 per cent increase in full-price sales for the third quarter to October 25.
And it upgraded its annual profit guidance by £30million to £1.13billion on the back of the improved performance.
Shares rose by 8.8 per cent, or 1175p, to 14,580p.
Julie Palmer, a partner at consultancy Begbies Traynor, said: ‘At a time when many retailers are feeling the squeeze from rising costs, weak consumer confidence and uncertainty around the next Budget, Next appears largely immune.’
Next said its performance in the UK had weakened compared to the ‘exceptional’ first half when it was boosted by favourable weather and the cyber-attack which hit rival Marks & Spencer.
Update: Next, which runs around 900 stores, reported a stronger than expected 10.5% increase in full-price sales for the third quarter to 25 October
But growth in its home market of 5.4 per cent in the quarter was still stronger than expected.
The sharpest gains came in its international division, where full-price sales grew 39 per cent. Next’s shares are now up 55 per cent this year.
Its strong performance comes amid dark clouds in retail, with the Confederation of British Industry last week saying sales are down as consumers fret about next month’s Budget
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