Britain's third-biggest clothing chain Next beat forecasts with a 17% rise in annual profit and said its new financial year had started well, boosted by gift buying for Mother's Day.
Next, which runs over 350 shops in the UK and Ireland and a mail order business, said profit before tax rose to £353.3m sterling in the year to January. Analysts' forecasts had ranged from £340-345m.
Like-for-like sales were up 3% in the first seven weeks of its new financial year, though the firm said sales were flattered by the inclusion of Mother's Day, which fell outside the comparative period last year.
Next, which sells mainly women's fashions, but also clothes for men, children and homewares, raised its annual dividend by 13% to 35 pence per share and expected to increase net selling space by about 420,000 square feet this year.
Britain's shops are struggling with a slowdown in consumer spending growth as interest rates rise, and clothing chains are facing an extra challenge as supermarkets move onto their patch. Next has fared better than most, however, holding its nerve on pricing over Christmas when rivals discounted, and benefiting from mistakes at market leader Marks & Spencer.
