Next boss Lord Wolfson signals the end of inflationary pressures after earnings surged 5.7%

The boss of Next signaled the end of the inflation crisis – and promised to raise prices less than expected this year.

Chief Executive Lord Wolfson reported a 5.7 percent rise in annual profit to £870.4 million, raising hopes the pressure on living standards was finally easing.

The fashion company FTSE 100, which has 500 stores and is considered a good barometer of how British consumers are faring, expects prices to rise 7% in spring and summer and then 3% in autumn and winter.

It warned of a rise of 8 and 6 percent respectively in January.

The forecast came just days after Bank of England Governor Andrew Bailey said he expected inflation to “fall sharply” – starting this spring.

That would be a great relief for families who are struggling to make ends meet as inflation currently stands at more than 9 percent.

Wolfson (pictured) said he expects the intense cost pressures that Next is facing, such as for shipping and its suppliers’ factory gate fees, to have eased by the fall.

And he forecast a strong recovery in 2024, saying “we never thought the downturn would last.”

He said inflation will “cool off” as supply problems subside, adding: “And unless there’s structural damage to the economy, we see no reason why we shouldn’t see a fairly strong recovery next year.

“The problem is, when everyone else is talking about a Category 10 hurricane, someone who says ‘I think it’s going to be a storm’ is often accused of thinking it’s going to be sunshine.

“We’re not optimistic, but we’re just not as pessimistic as a lot of the reports we read.”

Wolfson said “customers haven’t really stopped spending” even as Brits feel pressure to cut back on essentials due to higher household bills.

His comments came as Next reported higher profits on sales up 8.4 percent to £5.1 billion.

But shares fell 4.3 per cent, or 292 pence, to 6434 pence after Next warned demand would slow this year, with full price product sales down 3 per cent in the first half and down in the second half 0.2 percent declined.

Full-year profit is expected to fall to £795m.

Next, they look for ways to save money, such as B. Stop selling products that customers regularly return.

It’s made headlines in recent months for buying up well-known retailers on the brink of collapse, including fashion company Joules and online furniture retailer Made.

This week it announced an £8.5million deal for vintage brand Cath Kidston, but not its stores.

And the Leicester-based company is trying to reach other countries by experimenting with different business models, such as B. Local operators who sell or manufacture Next goods themselves.

Next said its current model is “not effective in some very large markets like America and Asia due to logistics and customs costs of flying product from UK warehouses”.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said its investments in brands with “unique and diverse looks”, including Reiss and Cath Kidston, are a testament to its global ambitions.

“Cath Kidston may be ubiquitous in the UK, but its focus on British culture should make it stand out in crowded retail spaces elsewhere, while Reiss has attracted celebrity and royal clients,” she added.

Wolfson, who was only 33 when he became the company’s chief executive in 2001, said, “The year ahead looks challenging: the combination of inflation in our cost base and revenue, which is likely to decline, is uncomfortable.

“But the company is well prepared. Looking ahead to next year and longer term, our outlook is more positive than it has been for some time.’