Fashion retailer raises forecasts

NEXT, the fashion retailer, raised its annual earnings and sales forecasts as a spell of unusually warm weather and royal wedding fever caused Britons to replenish their summer wardrobes.

The shares rose to the highest in more than six months after the retailer said pre-tax profit for the fiscal year ending January 2012 will be £535 million (€603.2m) to £585 million, £15 million higher than forecast in March.

The retailer, owns more than 500 fashion outlets in Britain and Ireland. The increased forecast comes as most retailers struggle to contend with falling consumer confidence and rising costs for raw materials.