Next upgrades profits forecast after pre-Christmas sales boost

Fashion and homeware chain warns of possible delays due to Red Sea attacks amid better-than-expected trading figures

Next has upgraded profit hopes for the year after ringing up 38m more in sales than expected in the run-up to Christmas but warned that difficulties in the Red Sea could mean problems with deliveries in the year ahead.

The fashion and homeware chain said that full-price sales stepped up dramatically, rising by 10% in the last two weeks before Christmas. As a result, sales rose by 5.7% in the nine weeks to 30 December, far better than the 2% expected.