LONDON, Sept 12 (Reuters) - Britain's second biggestclothing retailer Next posted a 8.2 percent rise infirst-half profit, helped by a strong performance from itsDirectory internet and catalogue business as well as new storeopenings.
The group, which trades from over 500 stores in Britain andIreland and about 200 more overseas, said on Thursday it made apretax profit of 271.8 million pounds ($430 million) in the sixmonths to July 27.
That compares to 251.3 million pounds in the same periodlast year and analysts' average forecast of 268 million pounds,according to a Reuters poll.
Revenue rose 2.2 percent to 1.68 billion pounds, with retailsales down 0.9 percent but Directory sales up 8.3 percent.
The company also said it would raise the interim dividend by16.1 percent to 36 pence.
Recent official data and surveys have shown an improvingoutlook for UK consumer spending with cash-squeezed Britonsfeeling more confident about spending money. However, retailersincluding Next remain cautious on the market for the year ahead.
"Looking ahead the economy looks set to improve moderately,albeit at a slow pace and with the risk that credit easing maynot translate into growth in real earnings," the company said ina statement.
The firm has generally been able to defy the economicdownturn, helped by its strong online offer, new store openingsand diversification into overseas markets.
The group raised its annual pretax profit expectations inJuly after good second-quarter sales growth, upping its guidancerange to 635-675 million pounds from 615-665 million pounds.
Shares in the firm closed at 5,190 pence on Wednesday,valuing the business at 8.12 billion pounds.