Next has posted a 3.2% rise in its second quarter full prices sales, as the clothing retailer exceeded its own expectations by £42m.

Having recorded a strong summer last year, Next had forecast that its Q2 sales would be down by 0.3%.

Next attributed the profit improvement in Q2, which covered the 13 weeks to 27 July, to additional sales (£11m) as well as cost savings (£9m), mainly in logistics.

Across the first half, Next has reported that its full price sales were up by 4.4% compared to last year – against guidance that this would be up by 2.5%.

Next has now increased its profit guidance for the full year by over £20m to £980m, which is up by 6.7% in comparison to last year.

Investment director at AJ Bell, Russ Mould, commented that the retailer had low expectations for summer 2024 as beating last year’s strong performance was “always going to be a tough challenge”.

“While the first half of 2024 has been truly miserable for the UK retail sector thanks to unfavourable weather, the end of June perked up and much of July has had glorious sunshine,” Mould said. “That’s encouraged people to get out of the house and into the shops.

“Next has once again grabbed a slice of consumer spending, helping to make up for a challenging time earlier this year.

“Next has found the magic ingredients to deliver strong returns. It has a reputation for selling clothes that are considered good quality and will last a long time, something that’s important to many shoppers. The ordering and returns system runs smoothly and it also knows how to get the most from a store network. Combine these factors together and you’ve got a business that stays one step ahead of the competition.”

Next will announce its results for the first half of the year on Thursday 19 September.

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