(Adds detail, analyst comment, shares)
LONDON, Oct 28 (Reuters) - Next, Britain's secondlargest clothing retailer by value, posted third-quarter salesin line with guidance and edged up its full year sales andprofit forecasts, despite a warning that consumer demandremained volatile.
Next, which trades from more than 500 shops in Britain andIreland, about 200 mainly franchised stores overseas and itsDirectory catalogue and internet business, said on Wednesdayfull-price sales rose 6.0 percent in the quarter to Oct. 24.
That outcome is just above the mid-point of its second-halfguidance range of up 3.5 percent to 7.5 percent and compares tofirst half growth of 3.5 percent.
Full price sales at Next's stores rose 5.9 percent. Theywere up 6.2 percent at the Directory business. Trade inSeptember was strong while October was relatively subdued.
Next has outperformed peers, including market leader Marks &Spencer, for a decade due to a strong online business,rapid expansion at home and abroad and diversification into newproduct areas, such as homewares.
Shares in the firm were down 1 percent at 78.63 pounds at0736 GMT, valuing the business at 12 billion pounds ($18.4billion).
"With the share price up 20 percent plus over the last yearcompared to a flat wider FTSE-100 index, the valuation is seenas arguably up with events near to medium term," said KeithBowman, equity analyst at Hargreaves Lansdown Stockbrokers.
Next forecast a 2015-16 pretax profit of 810 million pounds to 845 million pounds. It was previously forecasting 805 millionpounds to 845 million pounds.
Full-year sales growth was forecast at up 4-6 percent.Previously it was 3.5-6 percent.
The firm has a well-established policy of returning surpluscash to shareholders through share buybacks or specialdividends. As announced in its July update it will pay a special dividend of 60 pence per share on Nov. 2.($1 = 0.6535 pounds) (Reporting by James Davey, Editing by Paul Sandle)
Next (NXT)
