Next has shrugged off cost-of-living concerns as the high street giant revealed it was buoyed by improved full-price trading and a strong end-of-season sale in the latest quarter.

The fashion chain upgraded its profit target as a result.

The retailer, which runs 466 stores across the UK, reported that full-price sales increased by 6.9% over the 13 weeks to July 29, compared with the same period last year.

It comes after the firm told shareholders in June that it had seen better-than-expected sales as it benefited from “exceptionally warm weather”.

Model wearing clothing from Next's summer 2023 line
Next revealed strong full-price sales over the latest quarter (Next/PA)

Next said full-price sales over the six weeks since the previous update grew by 3.7% against the previous year, taking in £16 million more in sales than expected.

Nevertheless, it represented a slowdown from the start of the quarter amid damper weather last month.

The retailer said strong sales over the past quarter included a 10% jump in online trade with a 2.2% increase for stores.

It also reported that its end-of-season sale “has gone well” and said it cleared more stock than expected.

As a result, Next increased its pre-tax profit guidance for the current financial year by £10 million to £845 million.

Despite the improved performance, Next held its sales forecast of 0.5% growth for the second half of the financial year.

It said this would put the firm on track for a 1.8% increase for the year as a whole.

Jefferies analyst James Grzinic said: “This self-evidently assumes a reducing willingness by consumers to spend their improving disposable income.”