Clothing retailer Next today nudged its full-year profit forecast higher as it reported a rise in sales in the run-up to Christmas along with better margins.
Kicking off the post-Christmas retail reporting season for listed companies, Next said it expected a year to the end of January 2013 pretax profit of £611-625m sterling.
Its previous guidance was £590-620m.
Next has a long standing policy of never going on sale before Christmas.
"Although sales have been in line with our expectations, cost control measures, markdowns and gross margins have all been slightly better than expected," the firm said.
With Britain facing the prospect of a triple-dip recession, many UK retailers have been finding the going tough as consumers fret over job security and a squeeze on incomes.
Next has generally defied the gloom, helped by its strong online offer, a constant stream of new store openings and diversification into homewares and overseas markets.
Next said total sales, excluding VAT sales tax, rose 3.9% in the November 1 to December 24 period. That compares with an increase of 2.7% in its third quarter, giving a year to date rise of 3.9% - in line with guidance of 3-4.5%.
Sales at Next's over 500 stores in the UK and Ireland rose 0.8% in the November, December period while sales at the Directory home shopping business increased 11.2%. The firm said its post-Christmas sale had started well.
Next forecast earnings per share growth for the 2012-13 year of 14-17%, partly reflecting £241m of share purchases. For the 2013-14 year the firm guided to sales growth of 1.5-4%, with profit up in line with sales and a further £250m share buy backs.
"We think it is unlikely there will be any dramatic change in the consumer environment in the year ahead," it added.
