202223 profit up betterthanexpected 5.7
Sees prices up 7 in springsummer, up 3 in autumnwinter
Maintains sales and profit guidance for 202324

LONDON, March 29 Reuters British fashion retailer Next reported a betterthanexpected 5.7 rise in annual profit on Wednesday and said it would not need to increase prices by as much as previously thought.

However, it still expects higher spending on wages, energy and technology to reduce its profit this year, and the retailer39;s shares were down 6 in morning trading after it retained its cautious outlook.

Next, which trades from about 500 stores and online and is often considered a good barometer of how British consumers are faring, said inflationary pressures were expected to ease as freight costs drop and the cost of goods improves.

The company has shown more resilience than most to the costof living crisis in Britain and is considered by analysts to be one of the best run retailers in the country. Its shares had been up 16 this year prior to Wednesday39;s update.

It now expects 7 likeforlike price inflation in the springsummer season and 3 in autumnwinter down from its previous forecast of 8 and 6, respectively.

That reflected a significant drop in container freight costs and improving factory gate prices the price at which it purchases goods due to increased factory capacity and efforts to move production to lower priced sources of supply.

We still anticipate we39;ll be moving production out of China and into other…