Next posts 6% increase in pre-tax profits

Fashion chain Next today reported better-than-expected results, despite a challenging year for its high-street outlets.

Next said increased store space, cost cutting and stock management had helped it post a 6% increase in pre-tax profits to £449.1m (€648.8m), ahead of City expectations for the year to January 28.

The company said combined sales for the first seven weeks of this financial year were up 5.6% on 12 months earlier, but the competitive and economic environment was likely to remain tough over the coming year.