Clothing retailer Next raised its full-year profit forecast little more than a month after setting it, as sales for the first quarter of the year exceeded analyst estimates.

The retailer also increased its sales predictions for the second time this year after the early part of 2014 benefited from warmer spring weather and a more favourable economy, chief executive Simon Wolfson said.

“We expected the first quarter to be much better, but as it turned out not only was the weather not cold, it was actually unusually warm,” Mr Wolfson said. “Not only did last year’s trend reverse out, it actually reversed out and got better.”

Next’s earnings have surpassed those of its main competitor Marks & Spencer, helped by a business model that’s adapted more quickly to the shift in consumer habits toward online shopping.

Next Directory has grown to become Britain’s biggest home-shopping business, while the company’s stores had a particularly strong first quarter.

“With unparalleled forecast visibility, Next continues to be a high quality, low risk investment,” Simon Bowler, an analyst at Exane BNP Paribas, said in a note today.

The company’s stock has risen 19 per cent this year before today, giving the company a market value of £10 billion, about 40 per cent more than M&S.

Pretax profit for the year through January will be £750-£790 million, Next said in a statement. The company had forecast a figure of £730-£770 million on March 20th.

Next forecast sales growth of 5.5 per cent to 9.5 per cent for the year, compared with a prior forecast of 4 per cent to 8 per cent.

Revenue rose 11 per cent in the first quarter, outpacing the median estimate of analysts for an 8.6 per cent increase. Next Directory sales increased 14 per cent in the quarter. – (Bloomberg)