British fashion chain Next expects profits to exceed market forecasts after its Christmas sales were stronger than expected.
The company said total sales rose 9.8 per cent between August 1 and December 24. Like-for-like sales in the 251 stores unaffected by new openings close by, were down 3.2 per cent. That compared with a previous drop of six per cent - the retailer's worst sales performance for a decade.
Next, which sells mid-price fashion and homewares, said it now expects full-year profit before tax to be in the range of £435 million to £450 million compared with current estimates of around £420 million pounds. In the year ending January 2005 it made £423 million profit.
The company remains cautious given a difficult retail environment, saying it is budgeting for like-for-like sales to continue to run around minus 3 per cent over the next six months.