Next has raised its full-year profit forecast by £12m to £1.26bn following better-than-expected performance in the first half of the year, driven by warmer weather and strong sales both in the UK and overseas. The FTSE 100 company, which owns UK rights to Gap and Victoria’s Secret and holds stakes in Reiss and Joules, reported a 9% increase in total group sales and an 11% rise in pre-tax profits to £566m for the six months to July. This marks the fourth time Next has increased its profit guidance this year, with the last update in early August during European heatwaves.

The retailer attributed part of its overperformance to two unusually warm UK summers, alongside cost-cutting efforts in warehouses and successful execution of its annual aims. Despite last year’s £1bn annual profit milestone, Next cautioned about ongoing risks from rising inflation, higher mortgage costs, and a weak jobs market, warning that tax increases—potentially linked to John Healey’s upcoming October 28 budget—could exacerbate challenges. The company also emphasized its commitment to human-led fashion design, stating consumers prefer authentic creativity over AI-generated outputs, and is investing in traditional techniques like painting and screen printing.

Analyst Aarin Chiekrie of Hargreaves Lansdown praised the results, noting accelerated sales growth and effective online marketing offsetting in-store declines. Next’s shares rose 2% in early trading, making it the top riser on the FTSE 100.