Next, Britain's second biggest clothing retailer which has outlets across Ireland, raised its guidance for annual sales and profit for the second time in three months after a strong second quarter performance, helped by favourable weather and new store openings.

The group, which trades from over 500 stores in Britain and Ireland, about 200 stores overseas, and through its Directory internet and catalogue business, said it now expected a 2014-15 pretax profit of £775-815 million. That compares to previous guidance of £750-790 million, and would represent growth of 11-17 percent on the £695 million pounds made in 2013-14.

Next said this morning its total sales rose 10.7 per cent in the 26 weeks to July 26th, having been up 10.8 per cent in the first quarter. Store sales rose 7.5 per cent, while Next Directory sales were up 16.2 per cent.

Next raised its full year sales guidance to 7-10 per cent from 5.5-9.5 per cent previously. Shares in Next, which have risen 38 per cent over the last year, closed Monday at 6,520 pence, valuing the business at £10 billion.

Next has generally been able to defy a tough macro economic background helped by its strong online offer, new store openings and diversification into new product areas, such as homewares, as well as new overseas markets.

“It might appear overly cautious to forecast a full-year sales range which is below our current rate of growth,” said the firm. “However, last year’s first two quarters were hampered by a particularly cold spring and easter which presented a soft comparison for this year.”

It said second-half comparative numbers are tougher, particularly in the fourth quarter. It forecast second-half sales growth in the wide range of 4-10 per cent. The group forecast full year growth in earnings per share of 12-18 percent, up from 8-14 per cent previously. So far this year Next has paid or declared £223 million of special dividends and returned £105 million through share buybacks.

Reuters