Next continues success story by reporting first £1bn in annual profits

Next expects tax rises in April ‘to weaken the UK employment market and negatively impact consumer confidence as the year progresses’. Photograph: Christopher Thomond/The Guardian

It may not be a fashion leader or the cheapest place to fill your wardrobe, but Next has quietly confirmed its place as a British success story by ringing up £1bn in profits for the first time.

Next’s growth came despite static sales of its own label in the UK as it expands the brand overseas – including via online marketplaces such as Zalando – and sells other labels it has invested in both online and in its stores.