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LONDON, July 29 (Reuters) - Next, Britain's secondbiggest clothing retailer, raised its guidance for annual salesand profit for the second time in three months after a strongsecond quarter performance, helped by favourable weather and newstore openings.
The group, which trades from over 500 stores in Britain andIreland, about 200 stores overseas, and through its Directoryinternet and catalogue business, said it now expected a 2014-15pretax profit of 775-815 million pounds ($1.32-$1.38 billion).
That compares to previous guidance of 750-790 millionpounds, and would represent growth of 11-17 percent on the 695million pounds made in 2013-14.
Next said on Tuesday its total sales rose 10.7 percent inthe 26 weeks to July 26, having been up 10.8 percent in thefirst quarter. Store sales rose 7.5 percent, while NextDirectory sales were up 16.2 percent.
Next raised its full year sales guidance to 7-10 percentfrom 5.5-9.5 percent previously.
Shares in Next, which have risen 38 percent over the lastyear, closed Monday at 6,520 pence, valuing the business at 10billion pounds.
Next has generally been able to defy a tough macro economicbackground helped by its strong online offer, new store openingsand diversification into new product areas, such as homewares,as well as new overseas markets.
"It might appear overly cautious to forecast a full-yearsales range which is below our current rate of growth," said thefirm.
"However, last year's first two quarters were hampered by aparticularly cold Spring and Easter which presented a softcomparison for this year."
It said second-half comparative numbers are tougher,particularly in the fourth quarter. It forecast second-halfsales growth in the wide range of 4-10 percent.
The group forecast full year growth in earnings per share of12-18 percent, up from 8-14 percent previously.
So far this year Next has paid or declared 223 millionpounds of special dividends and returned 105 million poundsthrough share buybacks.($1 = 0.5892 British Pounds) (Reporting by James Davey; editing by Kate Holton and PaulSandle)
Next (NXT)
