Next has reported a 6.2% year-on-year increase in full price sales, beating expectations of 4% set out in its full-year results.

The sales, which included items sold in retail, online and though Next Finance interest income, were £28m ahead of forecast and have been attributed to “exceptionally strong growth” of 11.8% in the first five weeks of its financial year.

In the UK, the fashion and homewares retailer's sales increased annually by 4.4% in the 13 weeks to 2 May, although as anticipated, this growth weakened as it moved into a period where last year’s sales began to strengthen.

Next is expecting sales in Q2 to increase by 1% year-on-year, after the firm benefited from "exceptionally warm weather and competitor disruption" last year.

As a result of the increase in sales, the retailer has increased its profit guidance for the full-year from £1.21bn to £1.218bn, marking a 5.2% annual increase.

However, it has retained its sales guidance at £5.9bn for the full-year, and following this guidance upgrade, shares in Next increased by over 3%.

Investment director at AJ Bell, Russ Mould, complemented Next’s performance following its ability to increase its guidance despite the disruption caused by the conflict in the Middle East.

He concluded: "Next is a well oiled machine – despite conservative assumptions on Iran, forecasts have still ticked up. This is predicated on making cost savings and passing on some increase in prices, particularly in the Middle East which is an important component of its international operations.

"Apart from anything else, investors will appreciate the usual clarity on offer from Next at a time when much of the backdrop looks decidedly murky.

"The inherent strengths of Next as a business mean it’s not too hard to see a further improvement in its competitive position as less robust rivals struggle against a tricky consumer and cost environment."

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