Next has warned that a no-deal Brexit could lead to disruption at UK ports and higher prices in its shops, but shares in the company soared as the fashion and homewares retailer said the long hot summer had bolstered sales and profits.
The retailer’s shares climbed by more than 9% on Tuesday, making it the biggest riser in the FTSE 100, after Next said sales had risen by 1% more than expected, strengthened by the heatwave.
When Next updated investors in August, the chief executive, Simon Wolfson, said early summer sales had been boosted by the heatwave and he feared a slowdown in August and September.
However, that slump did not materialise and on Tuesday the retailer increased its profit forecast for the year to the end of January by £10m to £727m, which would be in line with last year.
The group reported flat pre-tax profits of £311.1m on sales of £2bn for the six months to the end of July.
“We believe the overperformance in the first half was flattered by the unusually warm summer and we remain cautious in our outlook for the rest of the year,” Wolfson said.
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