Next has raised its full year pre-tax profit guidance to £885 million after a strong third quarter.

The retailer said that the increased guidance, which was up by £10 million, comes after full price sales in the period from August to October rose by four per cent on the previous year – £23 million ahead of its full year profit guidance which was previously due to be increased by two per cent.

“Our revised guidance for full year full price sales growth is now 3.1 per cent; this assumes that full price sales for the rest of the year are up two per cent,” Next said. “Profit generated from the additional sales achieved in the third quarter has added £10 million to our full year forecast for profit before tax.”

Next also said its acquisition of an additional equity stake in Reiss this year would result in an “exceptional accounting gain” (non-cash) of around £110 million.

In June, reports suggested that Next could be planning to sell Reiss at a valuation of more than £500 million.

However, last month Next increased its stake in the company to 72 per cent as part of a £178 million deal.

Next took a 25 per cent stake in Reiss from private equity firm Warburg Pincus in 2021 before choosing to increase it to 51 per cent and become the fashion brand’s majority stakeholder last year under pre-agreed terms.

Full year pre-tax profit guidance for the company was previously upped by £10 million to £845 million following a sales increase in the second quarter of almost seven per cent compared to the same period of 2022.

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