Next has increased its total group sales and full price sales guidance for the full-year in its Q3 update.

The fashion and homeware retailer stated that its full price sales are now expected to increase by 7.3% year-on-year to £6.03bn in the 2026/27 financial year, while its total group sales are set to grow by 7.6% to £7.54bn.

Its profit guidance remains unchanged, and is expected to increase by 8.4% to £1.25bn.

The updated guidance comes as full price sales were up 8.1% year-on-year in the 13 weeks to 31 October. This was £33m ahead of its guidance of 5.8% for H2.

Next said all of the sales over-performance came from its international business, with sales increasing by 32.5% year-on-year against its forecast of 20.5%.

However, growth in its UK slowed compared to the first half, with sales increasing by an expected 2% year-on-year. The retailer added that growth has been volatile, with unseasonably warm weather adversely affecting sales in September.

Following the update, shares in Next increased by 2.6%.

Head of markets at interactive investor, Richard Hunter, said Next has provided a "pleasant surprise" in its sales forecast, while maintaining its "typically cautious outlook".

He concluded: "The almost inevitable upgrade to full year forecasts – if only in full price sales rather than the previously raised pre-tax profit number, which was a small weight on the opening share price given high market expectations – comes after a strong quarter in which the international business was the standout performer.

"Next has reassuringly shown its mettle once more in a famously competitive environment, in which it is seen as something of a bellwether. The share price has risen by 10% over the last year as compared to a gain of 11% for the wider FTSE100 and by 113% over the last three years, which is a considerable achievement given the traditional restraints which retail stocks face.

"And, while the share price and the valuation may be breaking new and unchartered ground, so are growth and profits. While the bar is set increasingly high by the group’s ability to deliver time and time again, the market consensus of the shares as a buy reflects that investors recognise the singular strength of this slick and well-regarded company."

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