Next interim profit jumps on better-than-expected full price sales

(ShareCast News) - Clothing retailer Next reported a 7.1% jump in first-half pre-tax profit, with revenue up as the company sold more items at full price than it had expected.Profit came in at £347.1m from £324.2m in the first half of last year, while total sales were up 2.7% at £1.91bn.Next's retail sales were up just 0.2% to £1.08bn, but revenues from Next Directory rose 8.2% to £767m and Next Brand sales increased by 3.3% to £1.85bn.The retailer raised its interim dividend from 50p a share in the first half of last year to 53p a share and maintained its sales guidance for the full year, with Next Brand full prices sales expected to be up between 3.5% and 6%. It said this implies sales growth of 3.5% to 7.5% in the second half.As far as the new National Living Wage is concerned, the company said that as it affects all employers equally, both within and outside the retail sector, it's unlikely to affect the competitiveness of any individual business. Additional wage costs are likely to be similar for most clothing retailers, so any resulting price rises should be comparable across the industry, it said.Richard Hunter, head of equities at Hargreaves Lansdown, said: "As evidenced by today's weak market open, in an uncertain environment there are few pockets of dependability, but Next remains one such example."He added: "The company is not resting on its laurels and the improving economic environment in the UK should underpin further progress."At 0823 BST, Next shares were up 2.2% at 7,845p.