Next wearing snappy profits but confirms outlook uncertain

Updated: 06:05 EST, 25 March 2010

British fashion retailer Next beat company guidance with an 18 per cent rise in 2009/10 profit but said it was reluctant to predict profit in the current year because the outlook was so uncertain.

Next, which runs over 500 shops in the UK and Ireland as well as a home shopping business, said it made a pretax profit of £505million ($758million) for the year to January 31.

That compares with company guidance of £490-500million and £429million in the previous year. Group revenue increased to £3.41billion.

Next, which cut net debt to £400million, is paying a total dividend of 66 pence

The firm benefited from a better-than-expected Christmas performance, which reflected better product, fashionability and merchandising, along with tight cost and stock control.

Next, which cut net debt to £400million, is paying a total dividend of 66 pence, up 20 per cent.

In January, Next said it expected 2010/11 underlying sales at its shops to be within a range of down 3 per cent to up 1 per cent, with Directory sales between flat and up 2 per cent.

On Thursday it refined this guidance to first-half like-for-like retail sales of minus 2.5 per cent to up 0.5 per cent and first-half Directory sales of up 1-4 per cent.

Next shares, which have increased by 56 per cent over the last year, closed at 2,070 pence on Wednesday, valuing the firm at £3.88billion.