Next profits soar

Pre-tax profits soared at Next in 2009 after the desperate consumer environment the fashion retailer feared at the beginning of the year failed to materialise.Pre-tax profits climbed to £505.3m from £428.8m the previous year on revenues that climbed to £3.41bn from £3.27bn.Like-for-like sales were up by 0.5%, Next said.'The recession did not impact consumer spending by as much as most people expected,' the company said. 'Employment only decreased by 1.8% (circa 500,000) despite unemployment rising by circa 900,000.'It also pointed to an improvement in its ranges and a revitalisation of its brand, which it said had helped to bring a rise in like-for-like sales after four years of declines.Next was also helped by strong growth in its directory business, with sales rising to £873.2m from £816.4m. Sales in the retail division rose to £2.27bn from £2.20bn, while international sales slipped to £64.2m from £68.9m. Next said it is shifting its international approach from stores to directory sales.The company said signals on the economic outlook in the UK are mixed, with unemployment not as bad as feared, but worries over the size of the government deficit.'The outlook for the year ahead is hard to predict,' Next said.