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Next has upgraded its profit guidance again amid optimism ahead of the key Christmas period, which the PA news agency has described as "shrugging off concerns" over pressures on shoppers’ finances. The high street has raised hopes that UK consumers are still willing to spend amid the Cost of Living crisis. The retailer, which has Birmingham branches, raised its annual profit guidance by £30m – its fourth upgrade in eight months. Analysts said Next, which now expects full-year profits of £1.14bn compared with £987m last year, had proved “largely immune” to the pressures of a weak consumer environment. It comes amid fears about the Labour Party government's November’s budget in the UK. Julie Palmer, a partner at the advisory company Begbies Traynor, said: “Next has once again proven why it’s the gold standard in UK retail. READ MORE New 10mph speed limit in England 'for next six months' with drivers warned “At a time when many retailers are feeling the squeeze from rising costs, weak consumer confidence and uncertainty around the next budget, Next appears largely immune to such pressures. "Instead, with a growing international presence and consistently strong UK performance, the FTSE 100 retailer remains firmly on a winning streak.” David Hughes, at Shore Capital, said the pace of growth was “materially above guidance. This strong performance despite a challenging consumer environment is a reflection of the quality of the Next proposition.” However, Mark Crouch, a market analyst at eToro, said Next’s numbers could suggest the consumer economy was stronger than the City believed. “Either Lord Wolfson and his team have cracked the code of middle-England spending, or they’re quietly signalling that the cost of living crisis has passed its peak," Mark said. "Whatever the case, if this is what a ‘weaker economy’ looks like, investors may need to redraw their assumptions.” Next told investors it expects to deliver a pre-tax profit of around £1.135 billion for the year to January, as it hiked its guidance by around £30 million. This is the latest profit upgrade from the business, after it also raised expectations in July.
