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Business live
Next raises profit forecast after Christmas sales surge; JD Sports issues warning
Live  
Next raises profit forecast after Christmas sales surge; JD Sports issues warning
Next enjoys 10% sales jump before Christmas while JD blames mild weather and promotions for worse-than-expected performance
Headlines
Retail  
Next reports ‘dramatic’ rise in sales in Christmas run-up
Next reports ‘dramatic’ rise in sales in Christmas run-up
Executive pay  
FTSE 100 chiefs paid more in 3 days than average UK yearly wage, study says
Exclusive  
Big carmakers lobbied UK to weaken or delay electric car rules
Mortgages  
HSBC joins rate-cutting drive with deals below 4%
Thurrock  
Watchdog investigates accountant at bankrupt council
Agriculture  
Ministers accused of breaking pledge to English farmers over £227m underspend
QBE  
Insurer forced to pay thousands of pounds to small firms hit by Covid payout delays
SpaceX  
Elon Musk’s company launches first phone service satellites
Elon Musk  
SpaceX accused of unlawfully firing workers critical of CEO
Horizon scandal  
Ed Davey accuses Post Office bosses of misleading him
Exclusive  
CEO of collapsed crypto fund Hyperverse does not appear to exist
Ryanair  
Ticket sales hit after travel agent websites delist airline
India  
Frustrated delivery driver gets in the saddle after fuel queues
For sale: £130m 'super-penthouse'  
Apartment in Dubai has own cryogenic room and hay beds
Today's agenda
The UK clothing chain Next has raised its profit forecast for the fifth time in seven months, as it reported better-than-expected sales for the Christmas period, while JD Sports Fashion blamed warm weather for a worse-than-expected performance and warned on profits.

The fashion and homewares retailer said sales rose by 5.7% year-on-year in the nine weeks to 30 December, better than its previous estimate of 2% growth. In the last two weeks before Christmas, sales jumped by 10%. It upgraded its profit before tax estimate by £20m to £095m, up 4% from last year. Of that, £17m came from the sales beat so far and £3m from an upgraded sales forecast for January.

Richard Lim, the chief executive of the consultancy Retail Economics, said: "These figures are astonishingly strong and they will set them apart from the competition. There’s a gap emerging between those retailers who have invested heavily in their digital proposition over the last decade with those who have not and Next is leading the pack."

Next went into the end of season sale with 12% less stock than last year. The retailer said: "On the face of it, the consumer environment looks more benign than it has for a number of years, albeit there are some significant uncertainties."

Next pointed to wages rising in line with inflation, but said it does not intend to raise its selling prices in the year ahead.

However, there are risks, it said, including a weakening employment market, with job vacancy rates in the UK having already fallen over the last six months. Fixed-rate mortgage deals will continue to expire, forcing homeowners to refinance at much higher rates than they have been used to in recent years.

Next also mentioned difficulties with access to the Suez canal (caused by Houthi attacks in the Red Sea), if they continue, are likely to cause some delays to stock deliveries in the early part of the year. The largest cost increase will be wage inflation, estimated to be about £60m, due to inflation and the rise in the national living wage.

The sports retailer JD Sports didn’t fare as well. It blamed milder weather and a glut of promotions in the sports market. Like-for-like sales rose by 1.8% in the 22 weeks to 30 December, behind its expectations, while total revenue growth was up 6%. It lowered its estimate for profit before tax and adjusted items to between £915m and £935m, 10% below its previous guidance of £1.04bn.

Its new chief executive Régis Schultz said: "We have made good progress against our five-year strategic plan, delivering global organic revenue growth of 6% in the period, against very tough comparisons with last year, and opening over 200 new JD stores in the year. Our key markets have seen increased promotional activity during the peak trading season, driven by a more cautious consumer, but we continue to grow market share."

The agenda
• 8.15am-9am GMT: HCOB Services and Composite PMIs for eurozone 
• 9.30am GMT: UK Mortgage approvals and lending for November
• 9.30am GMT: UK S&P Global/CIPS Services PMI final for December
• 1pm GMT: Germany inflation for December
• 1.15pm GMT: US ADP Employment change for December
• 1.30pm GMT: US Initial jobless claims for week of 30 December
• 2.45PM GMT: US S&P Global services and composite PMIs final for December

We’ll be tracking all the main events throughout the day ...
Nils Pratley on finance
Thames Water’s owners only have themselves to blame for the writedowns
Thames Water’s owners only have themselves to blame for the writedowns
 

John Crace

Guardian columnist

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Well, 2023 didn’t exactly go to plan, did it? Here in the UK, prime minister Rishi Sunak had promised us a government of stability and competence after the rollercoaster ride of Boris Johnson and Liz Truss. Remember Liz? These days she seems like a long forgotten comedy act. Instead, Sunak took us even further through the looking-glass into the Conservative psychodrama.

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Opinion
The global economy is poised for another tumultuous year in 2024
The global economy is poised for another tumultuous year in 2024
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