Fashion retailer Next has traded ahead of expectations again, reporting a record pre-tax profit of £918m during the full year.
This is three million pounds ahead of the guidance of £915m given in January, largely due to better-than-expected clearance rates of sale stock in the Christmas sales.
For the year ahead, the high street success story said it expects profit guidance to reach £960m, up four per cent from what was previously expected.
During the term, statutory revenue was up 9.1 per cent to £5.4bn.
Next, led by City grandee Lord Simon Wolfson, previously flagged concerns that blocks in the Suez Canal – an important trade route in Egypt – could lead to delays in its stock delivery.
Today the firm said it does not currently anticipate any material adverse impact from stock delays.
Next said: “On average, transit times have been extended by 7-10 days and our product teams have adjusted the timing of their contract bookings to account for this delay.
“In addition, higher freight costs have been factored into our prices going forward but we still anticipate that our prices will fall.”
During the year, the firm returned £425m to shareholders through a combination of dividends worth £248m and share buybacks worth £177m.
Wolfson has spent the last four years transforming Next’s reputation from frumpy high street stores into one of the strongest players in both the digital and physical retail space.
Chairman, Michael Roney, said: “In the last year we have focused on improving our product ranges, improving our online service levels, managing costs and profitability, whilst also laying the foundations for future growth businesses.
“The continued success of Next is built on the hard work, dedication and decision-making of all the people who work for Next. “
Roney added: “I would like to thank them all for their contribution during the year; I have little doubt and much expectation that they will rise to the new challenges and opportunities that are presented in 2024.”