Next increases profit guidance after strong first half

Clothing retailer Next yesterday nudged up its annual sales and profit forecasts after beating its own guidance for first-half sales growth, boosted by warm weather in June and July.

Shares in the firm, which trades from more than 500 shops in Britain and Ireland, about 200 mainly franchised stores overseas, and the Directory catalogue and internet business, rose up to 2% yesterday — near to its record high — after it said it would pay another special dividend, its third this year.

Next has outperformed peers for a decade due to a strong online business, rapid expansion at home and abroad, and diversification into new product areas, such as homewares.