Next forecasted to reveal higher profits and sales
Next is set to unveil higher sales and profits later this week when the company reveals how it performed over the year to January.
Investors are expecting the company to reveal that sales grew by around 6.9% to £4.6 billion over the year.
It is also predicted to show that pre-tax profits rose 4.5% to £860 million, having increased its projection from £840 million set in November.
Investors and analysts will be keen to hear how trading has performed during the start of the new financial year as the cost-of-living crisis continues to bite.
In January, chief executive Lord Simon Wolfson said prices were set to peak at about 8% in the spring but will ease back afterwards to “no more than” 6% in the second half.
Shareholders will be hoping higher pricing has not impacted demand from shoppers in recent weeks.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “While these numbers are commendable, given the challenging environment for retailers, it’s important not to lose sight of the challenges ahead.
“To cope with rising costs, Next is raising prices. With the group set to pass on 6-8% cost inflation, there is a question mark over whether consumers can stomach these hikes.”
