Next has raised its profit forecast for the second time this financial year after delivering better-than-expected sales in the second quarter. The UK-based fashion and homeware retailer is set to announce next week that full-price sales—excluding discounts and clearance items—rose by 9.2% over the 13 weeks ending August 1, compared to the same period last year. This follows an earlier revision of its sales guidance in August, when it had anticipated a 4% increase for the quarter. As a result, Next is expected to confirm that sales grew by approximately 7.7% during the first half of the year. The improved performance is attributed to favorable weather conditions and a surge in demand in the Middle East, where pent-up consumer spending was released. However, the company is still likely to report a decline in in-store sales for the year to date, as overall foot traffic on the high street has weakened due to cautious consumer behavior. Investors are watching closely to see if Next can provide more insight into the financial health of its customers and whether they are shifting their spending toward more affordable options. Analysts are expecting high expectations for Next’s half-year results on September 17, following its consistent pattern of exceeding forecasts. Richard Hunter, head of markets at Interactive Investor, noted that Next has a history of under-predicting its performance, which often leads to upward revisions in profit guidance. Meanwhile, Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, suggested that the current outlook might be too conservative, given that Next’s core customer base—middle-aged and middle-income shoppers—has shown resilience in the current economic climate. There is also potential for further small revisions to guidance in the second half of the year.