Sweltering summer lifts Next sales as profit outlook upgraded again

Clothing and homeware retailer says growth led by suite of alternative brands and strong online sales Next has raised hopes that UK shoppers are still willing to spend despite pressures on household budgets, after the hot summer boosted its clothing sales. The retailer has upgraded its profit guidance for the third time this year, saying it benefited from sunny weather and the release of some “pent-up demand” in the Middle East and northern Europe in the 13 weeks ended on 1 August. Next, which owns the UK rights to the US brands Gap and Victoria’s Secret as well as stakes in labels including Reiss and Joules, said its full-price sales rose by 9% in the second quarter compared with the same period last year, more than double its initial estimate of a 4% rise. Growth was led by Next’s suite of alternative brands and strong online sales with trading in stores down, as customers shunned the high streets during the sweltering summer. The FTSE 100 company, which has more than 500 stores across the country, has a long history of pushing expectations higher and then beating them. This pattern has helped push its share price up by more than 20% in the past year alone. The retailer, which is