Next has increased its full-year profit guidance, after its full price sales rose by 9.2% year-on-year to £70m, which is "materially ahead" of its 4% forecast.

The fashion and homeware retailer said this over-performance was due to warm weather in the UK, the release of some pent-up demand in the Middle East and northern Europe after a weaker Q1, and the firm being able to spend more on profitable marketing.

Next said that it expects UK sales to be up 2.8% year-on-year, which is in line with its performance in Q2.

Meanwhile, growth in international sales is expected to moderate to 14%, after it achieved a one-off step change in its aggregator sales when it switched to ZEOS distribution services in August last year. This materially increased stock availability in its European aggregator business.

Following this update, Next has upgraded its full price sales guidance for the full-year from a 5% year-on-year increase to 6.3%, with the expectation of reaching £6bn in sales.

It also expects its profit before tax to increase by 7.3% year-on-year to £1.24bn, while its post-tax earnings per share is set to jump by 9.2% to £8.12.

It is also set to complete £524m of share buybacks in the current year, which is £14m higher than its previous guidance.

Shares in Next increased by over 6% after the update was published.

Investment director at AJ Bell, Russ Mould, said that Next’s ability to “pull off the under-promise and overdeliver" in its updates is anything but simple.

He concluded: "Yet another better-than-expected update and round of upgrades helped lift the shares to within sight of their recent all-time highs.

"The first-quarter slowdown linked to the Middle East conflict has proved to be short-lived and the subsequent rebound in the second quarter is genuinely eye-catching, supported by exceptionally strong overseas growth.

2Warm weather helped drive sales in the UK and sales of third-party products on its platform continue to be a notable feature of its success – own-brand sales were less inspiring, with a modest decline online and in-store sales flat.

"Unsurprisingly Next has been fairly conservative with its forward guidance, mindful no doubt of a tricky consumer backdrop and of giving itself a bar it can later clear. But today’s announcement confirms Next’s credentials as a retailer without rival in the UK and one with increasingly international horizons."

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