Inching closer to its target of achieving £1 billion in annual profitNext has raised its profit forecast for FY24 to £995 million, following a 23 percent increase in international sales in the six months to July.

This growth has helped the retailer offset a nearly 1 percent drop in UK sales of Next-branded clothing, with total group sales rising by 8 percent and pre-tax profits growing 7.2 percent to £452 million.

Next attributes the rise in its international sales to the growing convergence of global fashion tastes, fueled by the influence of tech platforms and improved global delivery networks, which make it easier for consumers to explore and purchase clothing from different countries. However, the retailer notes, while international tastes are becoming more aligned, cultural and climatic differences still exist.

Simon Wolfson, CEO, Next, states, more than half of the company’s sales now come from online channels and rapid growth in non-Next brands, which make up 17 percent of overseas sales. The group is expanding its wholly owned labels, such as Cath Kidston and Love & Roses, following the acquisition of these brands.

Next has also been expanding its international presence through partnerships. It has signed a deal with Indian retailer Myntra to develop online and physical stores, and it is strengthening its collaboration with US department store Nordstrom, now offering childrenswear in its stores. The company is also eyeing potential partnerships in Japan, China, and Australia.

To better serve international customers, Next plans to enhance its shipping hubs in the Middle East and Europe. The retailer’s full-price sales rose by 4.4 percent during the six-month period, and better-than-expected performance in the weeks that followed boosted sales by 6.9 percent. The retailer now expects second-half sales to increase by 3.7 percent, up from previous forecasts of 2.5 percent.