Sales boost raises Next profits

Retailer Next reported an 18% hike in profits today after seeing a turnaround in sales following four years of declines.

The group posted pre-tax profits of £505m (€565m) in the 12 months to January, up on the £428.8m (€480m) seen a year earlier.

Next thanked better-than-feared consumer spending and efforts to improve product ranges for the improvement, as like-for-like sales returned to positive territory with a 0.5% rise.

But chief executive Simon Wolfson joined fellow retailers in expressing concern over 2010, saying the group is “extremely cautious” on the sales outlook.