- Company lifts full year guidance- Strong Next Directory sales during third quarter- Trading remained volatile throughout the quarterHigh Street clothing and homeware retailer Next reported an increase in third quarter sales, despite ongoing trading volatility, as it upwardly revised its earnings forecast for the full year.Next Brand sales in the third quarter rose 4.3%, above its second half guidance range of 1%-4%. Its online and catalogue business Next Directory jumped 10.7% while its store network Next Retail rose just 0.4%. "With three quarters of the year behind us, and better visibility of full year costs, we are able to further narrow our sales, profit and EPS guidance for the full year," the retailer said in a company statement.For the full year to January 2014, Next now estimates that pre-tax profit will grow between 4.6%-9.4%, up from a previous forecast range of 2.2%-8.6% growth.Basic EPS growth has been lifted to a range of 15%-21% from the previous estimate of 12%-19% growth. "EPS will be enhanced by share buybacks of at least £300m, of which we have already purchased £295m. We may buy up to £50m more shares in the current year, depending upon the prevailing share price," the group added. S&P Capital IQ analyst William Mack said directory sales benefited from easy prior year comparisons, but he raised forecasts for the group driven by this division."However, we remain concerned about the ongoing weak demand at flagship Next stores, where we estimate second half 2014 like-for-like sales decline of 1.5%." He has increased second half basic EPS to £2.15 from £2.07 due to a lower forecasted tax rate of roughly 20% and kept a Hold recommendation on the shares.CJ