Next Raises Profit Forecast for Fifth Time, Pledges Zero Inflation

Despite wage bill increase, retailer expects record sales and maintains prices, but warns of potential Suez Canal disruptions.

Next, the high street chain, has raised its profit forecast for the fifth time in seven months, now expecting profits before tax to come in at £905m, a 4% rise year-on-year.
The company is also expecting record full-year sales of £4.78bn, boosted by strong online sales and a successful festive period.
Next has pledged not to raise prices this year, marking the first time in three years that its cost prices have stabilized, allowing it to maintain zero inflation in selling prices.
Despite an expected rise in its wage bill this year, including a £25m hit from the National Living Wage increase in April, Next is optimistic about the consumer environment.
Potential risks include disruptions in the Suez Canal, which could cause delays to stock deliveries if the difficulties in the region continue.