High street chain Next has revealed its sales surged in recent months as hot weather and the release of pent-up demand in the Middle East helped it beat expectations.
The fashion and homeware retailer lifted its profit outlook again as a result of the stronger-than-expected second quarter.
Total full-price sales, which excludes discounts and clearance items, increased by 9.2% over the 13 weeks to August 1, compared with the same period last year.
This comes in above the 4% increase that the retailer was forecasting for the period.
In the UK, sales were up by 2.8% for the quarter, with online shopping driving the increase while stores sales decreased.
Meanwhile, online international sales soared by 37% year-on-year, according to the latest update to investors.
Next said the “over-performance” was partly due to weather in the UK being warmer than anticipated, with temperatures in June and July soaring, as well as spending more on profitable marketing campaigns.
It also pointed to the release of pent-up demand in the Middle East and Northern Europe following a weaker start to the year for both regions.
Trading in Next’s overseas business have been affected by the Iran war, which began at the end of February, with the Middle East region accounting for around 6% of the group’s annual sales.
But chief executive Lord Simon Wolfson previously said that it planned to raise prices in some overseas countries by as much as 8% to offset the impact.
Next said it was now expecting its full-year pre-tax profit to be £25 million above previous estimates at £1.24 billion, which would be 7.3% higher than the year before.
It is the second time this financial year that the company has upgraded its outlook for earnings.
Julie Palmer, managing partner at advisory group BTG, said: “The fashion retailer remains not only undeterred by the supply chain cost pressures from the war and disruption on the Strait of Hormuz, but even seems to have underestimated the resulting pent-up demand in some markets that has worked in their favour.
“Even as the heatwave has seen retail footfall drop, Next has bucked the trend with resilient overall sales as people deck out their summer wardrobes both in the UK and internationally.”