Next profits to beat forecasts

British clothing retailer Next expects annual profits to be slightly ahead of analysts' current average forecast.

British clothing retailer Next expects annual profits to be slightly ahead of analysts' current average forecast.

Next said today it expected annual profit before tax to be within a range of £463 million sterling ($913 million) to £473 million sterling.

The chain is the first major British retailer to give an indication of its performance in the run up to Christmas.

"In a challenging year we will have increased group profits through good control of stocks, margins and costs, along with a strong sales performance in Next Directory," Next said in a statement.

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Sales at the online and home shopping Directory business rose 9.3 per cent in the period from July 31st to December 24th, compared with a 6.9 per cent fall in like-for-like sales at Next's 308 shops that have been unaffected by new openings.

Analysts had forecast Next would undershoot its targeted sales performance of -2 to -5 per cent at its stores in the second half of its financial year.

Early anecdotal evidence suggests a mixed performance for British retailers over Christmas, with premium and luxury goods stores, online retailers and supermarket giant Tesco expected to have performed strongly.