Next shares climb on surprise online clothes boost

Clothing retailer Next returned to sales growth in its latest quarter, helped by warm weather in June and July and a surge in online sales, sending its shares sharply higher.

The stock, which had fallen 20% over the last year, rose up to 12% after Next also edged up its sales guidance for the full 2017-2018 year and maintained profit guidance. Next had cut guidance in January and May. It is now valued at £6.4bn (€7.1bn).

The company had faltered over the last two years due to a broader slowdown in spending on fashion and footwear that it first identified in 2015.