Next's sales for year ending January 31 2013 grew 5.1%, beating expectations.
Chairman, John Barton, said 2013 had been a great year for Next, which enjoyed an increase in pre-tax profit of 11.8% to £695m.
Sales for Next Directory, the online and catalogue arm of the company, rose by 12.4%, narrowing the gap with the retail arm where sales grew by 1.7%.
Mr Barton added: "That performance gives us a solid platform for 2014. Our strategy remains the same, focused on our products, our profitability, and returning cash to our shareholders. Notwithstanding the continued pressure on the UK consumer, we anticipate another year of growth for Next."
Home sales now account for 18% of the company's total turnover and to capitalise on this success Next plans to grow Home further by increasing retail space and improving online performance.
Three new large out-of-town Home stores are planned for 2014, with two of them being built to the company's own design from scratch.
Next expects sales to grow 8% through 2014, which is far more positive compared to this time last year when it only predicted a growth of 1% to 4% for 2013.