Next Share News (NXT)

Seymour Pierce has reiterated its 'hold' rating for High Street giant Next despite a decent first half, as the company's guidance going into the second half of the year disappointed.The group reported a 10% increase in first-half pre-tax profits to £251m, ahead of Seymour Pierce's forecast of £240m (consensus estimates were for £243m). Sales were already guided to in the pre-close trading update.Meanwhile, the firm reiterated its full-year profit guidance, which was raised last month to £575-620m from £560-610m previously. Seymour Pierce is expecting pre-tax profits of £615m, slightly ahead of the £609m consensus estimate.However, shares tanked on Thursday after Next said that August and early September sales were disappointing during an "unusually quiet period" and its outlook remains "cautious". Seymour analyst Kate Calvert said: "On outlook management has stated that 'if the economy had a weather forecast the outlook would be overcast - patchy rain for the foreseeable' and in terms of its strategy, it reads a bit like a political manifesto, but it is more of the same as we expect from Next. "It is a highly cash generative, tightly run company and looks to continue to execute on the basics of giving the consumer great product and capitalising on its leading multi-channel position. The shares are trading virtually at an all time high so we would expect profit taking today." By 11:00, shares were down 5.46% at 3,383p.BC