Warmer weather in April has given a lift to Next sales after the retail chain reported a better-than-expected start to its financial year today.
Full price sales for the 13 weeks to April 25 rose 3.2%, which was better than the range it gave in March for a rise of up to 3% in the first half of the year.
The performance was flattered by the earlier launch of its summer "New-In" brochure, which coincided with the burst of much warmer weather.
Shares rose by 3% today, even though the company stuck by its forecast that annual profits will rise to between £785 million and £835 million.
Next Directory's full-price sales were up by 7% in the 13 week period, a performance which Investec Securities described as encouraging.
The retailer has benefited from low inflation, an end of the decline in real wages, as well as healthy credit markets and strengthening employment.
Ketan Patel, senior investment analyst at Ecclesiastical Investment Management, said Next shares have returned 19% annually compared with 5% for the FTSE AllShare since 1988.
He added: "Management continue to deliver outstanding returns for shareholders over the very long-term in terms of earnings growth and total return."
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