British fashion retailer Next raised its guidance for annual profit by £10 million ($12.7 million) to £845 million on Thursday, after full price sales and the end-of-season summer sale came in ahead of forecasts.

The upgrade from Next, which is considered a barometer of how British consumers are faring as it trades from about 500 stores and online, came just six weeks after its last upgrade and shows shoppers continue to defy tough economic conditions.

A year of high inflation and consecutive interest rate rises in Britain have squeezed household incomes, but high street spending has held up, and Next said it sees annual full-price sales 1.8 percent higher than in its 2022-23 financial year.

Value-retailer Primark and Sports Direct-owner Frasers Group have both in recent weeks issued positive updates.

Next’s forecast for profits of £845 million in its statement on Thursday means they will come in 2.9 percent lower than it made in 2022-23.

By Sarah Young; Editor: Kate Holton

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