Next upbeat as sales and profits rise

HIGH street stalwart Next bucked the retail-sector gloom today, hiking its profit outlook and beating targets for first-half sales growth.

The group, which has been boosted by strong online trading, now expects annual profits of between £575 million and £620m, up from an earlier forecast of £560m-£610m.

It saw sales rise 4.5 per cent in the 26 weeks to 28 July as outlet sales edged 0.2 per cent ahead and online Next Directory rose 13.3 per cent. Next said stores were helped by new space offsetting lower sales from shops open more than a year.

Retail expert Nick Bubb said: “As Next always seems to come in at the top of the range, market forecasts will now focus on pre-tax profit of £620m for the year ending January, which will deliver 15 per cent EPS [earnings per share] growth: not bad in a low growth UK economy.”