Bumper Christmas boosts Next profits

UK clothing group Next today buoyed the retail sector by saying a bumper Christmas would lift its full year profits above forecasts.

Next said sales of full price goods during the week before Christmas had been well above its expectations.

The high street chain added that clearance rates during its end-of-season sale had been significantly higher than it anticipated.

It rounded off an upbeat trading statement by saying its mail order operation, Next Directory, finished the season strongly, benefiting from operational improvements.

The group said it was now expecting full year pre-tax profits of not less than £340m (€485m) against £301m (€429.3m) last year.

That would result in earnings per share growing by 30%, Next said.