Next Shares Jump as Q3 Sales Rise, Guidance Increased

Leading British fashion retailer Next (LON: NXT) saw its shares jump at the open on Wednesday after the company reported a strong performance in the third quarter of its fiscal year.

Next shares, at the time of writing, are up around 1.5%, trading at around the 10,220p per share mark. However, they opened the session at 10,350p.

Full-price sales for the quarter ending October 26th increased by 7.6%, surpassing the company's previous guidance of 5%. The robust performance was attributed to the early arrival of colder weather, which boosted demand for autumn/winter clothing.

Encouraged by this strong performance, Next has increased its full-year sales and profit guidance.

The company now expects full-price sales to grow by 4.9% for the full year to £5.02 billion, up from its previous forecast of 4%, or £4.98 billion. Total group sales are now expected to be £6.27 billion, up from £6.23 billion.

Additionally, Next has upgraded its profit before tax guidance to £1.005 billion from £995 million.

The retailer's online sales continued to be a significant driver of growth, with both Next UK and Label UK experiencing strong double-digit growth. However, in-store sales also saw a positive uptick. The company's total online UK sales in Q3 rose by 7.9%, while retail sales increased by 2.9%.

Next's revised guidance reflects its confidence in the continued strength of consumer demand and its ability to navigate the challenging economic environment.