Next profits 'slightly ahead' of expectations

Fashion chain Next today said profits would be ahead of expectations after a strong performance from its Directory catalogue and internet arm.

With margins and costs also under control, Next overcame a 6.9% drop in like-for-like sales at its high street operation between July 31 and Christmas Eve.

That was below the 5% to 6% deterioration forecast in the City, but Next said annual profits were still set to be “slightly ahead” of expectations, within the range of £463m (€686m) and £473m (€700m) for the year to January 27.