(Bloomberg) -- Next Plc shares hit a record high Thursday after the retailer raised its profit guidance for the second time this fiscal year, citing strong sales of autumn clothing.
The British fashion and homewares company said that its annual pretax profit is now expected to reach £995 million ($1.3 billion), up from previous guidance of £980 million.
Next’s shares rose 5.2% in early trading in London. The stock is up more than 53% in the past 12 months.
The retailer said its overseas business — where it sells clothes online in Europe, parts of the Middle East and Asia Pacific — grew 23% in the first half. That helped offset some weakness in the UK in the summer when sales were affected by poor weather.
“We’re fortunate in that the big swing in the weather we had in the UK between the very hot summer last year and a very cool summer this year didn’t happen in our other trading territories,” Chief Executive Officer Simon Wolfson said on a call.
Its autumn/winter season is also off to a strong start overall, Next said, as more normal weather conditions at this time of the year prompt shoppers to buy warm clothing. Full price sales in the second half should rise 3.7%, compared with a previous estimate of 2.5%, it said.
Next’s latest upgrade stands in contrast to the rest of the industry, as fashion retailers struggle with weaker consumer spending and unseasonable weather. John Lewis Partnership Plc last week blamed a tough environment for general merchandise for a dip in sales, as did Associated British Foods Plc at its discount retailer Primark this month.
The emergence of new growth drivers, such as sales overseas and Next’s Total Platform hub which sells e-commerce knowhow to other retailers, are “starting to increasingly detach Next from domestic demand conditions,” said James Grzinic, an analyst at Jefferies. “But it looks like all stars started aligning in recent weeks,” he added, pointing to the stronger-than-expected start to the second half as UK weather turned more seasonal.
Next is considered to be a leader among British retailers and Wolfson is known for regularly beating bearish forecasts.
(Updates with more details from statement, management and analyst comments, and shares.)
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