Analysts at Cantor Fitzgerald have welcomed Next's better-than-expected festive trading update, saying prospects for its business remain good despite the downturn caused by the mild autumn weather.Next said it now expected full-year profits to be within £10m either side of £775m, £5m ahead of the midpoint profit guidance it issued in October and 11.5% up on last year's figure. Earnings per share are set to be up 13.5% on a year ago. It also declared a fourth special dividend of 50p per share.The company said it expected a tough task in the first half of 2015/16 to match the performance in the same period last year. But it said it should be easier to do at least as well as it did in the second half of 2014/15 due to the weaker autumn sales.Cantor highlighted the performance of the company's Directory online business, which increased sales in the year to date by 12.9% and by 7.5% between 28 October and 24 December. Shop sales were up 0.5% and 4.6% respectively.The broker said: "There will be relief all around that the trading update was better than expected both in retail and the Directory."The valuation of the Directory, following recent IPOs is not, in our view, properly reflected in the Next rating."Cantor said Next's online business should continue to benefit from growth in online shopping, an increase in customer numbers, range improvements and overseas opportunities.The broker, which has a 'buy' recommendation and a 7,100p target price on Next, added: "Our view is that the current slippage is completely due to the mild weather, the underlying trend for consumption remains positive and the comparatives for next year ease."Shares in Next had risen 225p or 3.45% to 6740p at 10:47 in London.