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Next defies retail gloom with half yearly sales rise

Next, Britain's second-biggest clothing retailer, has beaten its target for first-half sales growth.

It was helped by a particularly robust performance from its Directory home shopping business as the wet summer encouraged shoppers to go online.

It also said it was modestly increasing and narrowing its sales and profit target ranges for the 2012-13 year. 

Next said its total sales rose 4.5%, excluding VAT sales tax, in the six months to July 28. That compares with a target an increase of 1-4% and a rise of 1.4% in its first quarter.

That compares with a company objective of an increase of 1-4% and a rise of 1.4% in its first quarter.

First half retail sales rose 0.2% compared to guidance of flat to down 3%, while Directory sales increased 13.3% compared with guidance of up 9-12%.

Next, the official clothing and homeware supplier to the London 2012 Olympic Games, said it now anticipated total sales growth in 2012-13 of 2-4.5% and group profit before tax of £575-620m sterling, up from a previous expectation of £560-610m.

Although inflation and unemployment are falling, many British retailers are still struggling as consumers grapple with sluggish wage growth and government austerity measures and worry about a stagnant housing market and fallout from the euro zone debt crisis.

Next has generally defied the gloom, helped by its strong online offer, a constant stream of new store openings and its diversification into homewares and overseas.

It which trades from over 500 stores in the UK and Ireland, nearly 200 stores in over 30 other countries, and the Next Directory online and catalogue business.