Bank holidays and the weather give lift to Next sales

FASHION chain Next raised its full-year profit hopes after warm weather and the royal wedding bank holiday encouraged customers to spend money.

The high street giant, which has suffered from mediocre sales since a dismal Christmas season, said consumers brought forward summer purchases and helped lift total sales by 5.2 per cent in the 13 weeks to April 30.

However, Next, which has more than 500 stores in the UK and Ireland, warned it did expect the current levels of growth to continue into the second quarter and remained cautious as consumer spending is squeezed.

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The company said it now expects pre-tax profits for the full year to be between £535m and £585m, around £15m ahead of the guidance given in March and above market expectations.

Next, and the wider retail sector, has been hit by a slowdown in consumer spending this year, as the VAT hike to 20 per cent and soaring input costs squeeze household incomes.

But the picture has improved for the retailer as online sales soared 14.8 per cent and retail increased by 0.9 per cent.

The company said sales were driven by better ranges and improved stock availability, particularly in womenswear.

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