Next forecasts bigger profits as summer dresses and suits lift sales

Retailer also warns of slowing growth in coming months as cost of living crisis hits budgets

Next is set to make 10m more in annual profits than previously expected after a rise in sales of suits and summer outfits boosted sales despite a squeeze on shoppers' spare cash from rising energy, petrol and food costs.

The clothing and homeware retailer said full-price sales rose by a better than anticipated 5% in the three months to 30 July, but warned it was expecting a slowdown in growth to just 1% in the second half of the year as the cost of living crisis hit shoppers' budgets.