Next Share News (NXT)

FTSE 100 retailer Next confirmed total sales growth of 10.3% in the first-half and slightly upgraded full-year earnings guidance, but fell short of City analysts' ambitious forecasts.Retail stores and its online business both delivered significant growth to lift profit before tax 19.3% to £324.2m for the six months to end-July, shy of the £329m analyst consensus, with earnings per share up 22% to 173.3p.The nunbers had been pretty well flagged in recent statements, although one of the few changes was that earnings per share guidance was raised slightly for the full year to 13-19% from 12-18%.The sales forecast was also broken down, with the company forecasting that the third quarter will grow by 10% and the fourth by 4% against a very strong sales performance in the final quarter last year.The balance sheet showed net debt up £38m year-on-year to £571m, with £300m of undrawn committed bank facilities.For the full year to end-January, cash is expected to be broadly neutral as the company continues to distribute the surplus to shareholders, with £223m declared through three special dividends paid this year and a further £105m returned through share buybacks.An interim dividend of 50p, up 39%, will be paid in January.Next also elucidated on management's strategic thinking, setting out its "priorities, opportunities and challenges" for the current year, namely: improving product and design; developing its retail stores; developing the Directory online business in the UK; developing Directory overseas; and developing its spin-off Lable online publication which trailled during the year.Label, which sells other 'premium' clothing brands as featured on its Directory catalogue, was profitable and made a healthy return on the capital invested, with no evidence of cannibalisation of Next-brand sales.Saying it was "concerned that some might be tempted to exaggerate the potential of this new business", the company stressed that it will be naturally constrained by only selling premium brands expects to grow sales of non-Next branded product from £77m to £110m in the current year.Analysts at Cantor said the results were "strong but slightly light of very ambitious market forecasts".This explained why Next shares were down 2.9% to 6,960p an hour after trading opened Thursday.