• Next trading sales up 8.4%.
• Next revealed its profit before tax of £870.4m.
• The group expects to raise prices more slowly this year than previously anticipated.

Next announced its full year results on Wednesday, revealing stronger than expected profits and a reduction to its price rises over the coming year.

Next’s total trading sales gained 8.4% YoY to £5.1bn, and full price sales jumped 6.9% as the retail market continued to show resilience in 2022.

As a result. profit before tax came in 5.7% higher at £870.4m, £10m above previous expectations, with its clearance rates in its end of season sale ahead of expectations and aiding growth in profit.

The retailer now expects to raise prices more slowly over the next year. Like-for-like price inflation in the spring and summer is expected to be 7% higher and 3% higher in autumn/winter, down from prior expectations of 8% and 6%. Next cited a reduction in the cost of container freight as costs began to return to normal, with the majority of these benefits expected to be felt in the second half of the year.

The group has maintained its current guidance for sales and profit, anticipating sales to decline by 1.5% and profit before tax to be £795m.

Next shares fell 5.6% so far this morning.