Next has recorded a five per cent profit hike in its latest financial year.

The British retailer said that pre-tax profits hit £918 million over the 12-month period, a record high for the clothing brand.

The figures beat the company's expectations of £885 million for the full-year which were announced last November; a profit guidance that had already been raised by £10 million.

Total group sales in the year ended January 2024 reached £5.8 per cent, an almost six per cent increase compared to the previous year.

Following its strong performance, the retailer said it expects a profit increase of 4.6 per cent to £960 million for 2024.

Next chairman Michael Roney said that over the year the company has focused on improving its product ranges and online service levels, as well as "managing costs and profitability" and laying the foundations for future growth businesses.

"We also made a number of new investments, increasing our equity stake in Reiss by 21 per cent to 72 per cent and taking a 97 per cent equity stake in FatFace," continued Roney. "We also acquired 100 per cent of the intellectual property in Cath Kidston."

Over the period, Next also launched brands JoJo Maman Bébé, Joules and MADE on its Total Platform.

The platform, launched in 2020, uses Next's infrastructure to offer online services to third-party brands, including websites; marketing; warehousing; distribution networks; and contact centres.

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