Next optimistic despite dip

High street fashion retailer Next appeared optimistic about its outlook despite a 6.9 percent fall in like-for-like sales during the six months ended 31 December. Total sales for the period rose 2.8 percent. The company raised its annual profit outlook to between £463 million and £473 million. Analysts had previously expected annual profits to be £456 million.

The company's catalogue business, Next Directory, performed particularly well, as expected, and outperformed Next's 308 stores. Sales rose 9.3 percent during the period, thanks to better stock control, which it said allowed it to maintain its margins. Next added that operating profits were expected to increase by between 5.1 percent and 7.2 percent. Based on this, earnings per share, which the company said had been improved by its share buyback policy, would increase by between 11.0 percent and 13.4 percent.

Next will release its preliminary results for the years ended 27 February on 22 March.