Lord Wolfson of Aspley Guise, the chief executive of Next, has divested £29 million worth of his shares in the prominent FTSE 100 fashion and homewares retailer.

The sale involved 290,000 shares, resulting in Wolfson retaining approximately 950,000 shares, which is currently valued at around £100 million according to regulatory disclosures.

This share sale has caused Next’s stock price to decline by 358p, or 3.5%, bringing it down to £97.42.

This divestment follows a significant 36% increase in the company’s share price over the previous year. Despite the ongoing cost of living crisis and rising inflation, Next has proven resilient, often viewed as a barometer for high street retailers. The company has consistently under-promised and over-delivered on its financial forecasts, recently revising its profit predictions upwards for the second time this fiscal year due to stronger-than-expected sales.

At 56 years old, Wolfson has been at the helm of Next since 2001 and is widely recognized for transforming the retailer into a leading player in the industry. Under his guidance, Next has expanded into a multinational corporation based near Leicester, operating 458 stores across the UK. Its Total Platform, which serves as an ecommerce hub, aids third-party retailers in selling products online.

The share sell-off is described as a form of “top slicing” by Wolfson, who last sold shares in January and previously in November 2020. This decision arrives in advance of a significant budget announcement from the new Labour government next month. Rachel Reeves, the chancellor, has not excluded the possibility of increases in inheritance and capital gains taxes, following warnings from Sir Keir Starmer that the budget could be challenging. Wolfson is a Conservative peer in the House of Lords and has been a known supporter of Brexit.

Analysts noted that company executives face restrictions on trading shares for much of the year, permitted to do so only when public information about the company is disclosed.

Last week, Next reported its financial results, highlighting a 7.1% increase in pre-tax profits to £452 million for the six months ending July 27. The company projects an annual profit nearing £1 billion, with sales reaching £2.95 billion in the first half of the year, reflecting an 8% rise from £2.73 billion during the same timeframe last year.