(Adds detail, CEO comments, shares)
LONDON, April 30 (Reuters) - Next, Britain's secondbiggest clothing retailer, raised its guidance for annual salesand profit after posting strong trading in its first quarterthat reflected better weather in the run up to the late Easterholiday.
Next, which trades from over 500 stores in Britain andIreland, almost 200 stores in more than 40 countries overseas,and via its Directory internet and catalogue business, said onWednesday it now expected a 2014-15 pretax profit of 750-790million pounds ($1.26-$1.33 billion).
That compares to previous guidance of 730-770 millionpounds, and would represent growth of 8-14 percent on the 695million pounds made in 2013-14.
Shares in Next, which have risen 49 percent over the lastyear, were up 2.3 percent at 6,632.4 pence at 0718 GMT, valuingthe business at 10.2 billion pounds.
Next's total sales rose 10.8 percent in the 13 weeks toApril 26.
"It was a little bit ahead (of internal expectations) butlast year retail had really poor weather - a big freeze in earlyFebruary, a very cold and early Easter. This year Easter waslate and warm," Chief Executive Simon Wolfson told Reuters.
Next said sales at stores rose 8.8 percent, while NextDirectory sales were up 13.7 percent.
The firm raised its full-year sales growth guidance to5.5-9.5 percent from 4-8 percent previously and its earnings pershare growth guidance to 8-14 percent from 5-11 percent.
Britain's recovery from its deepest recession in decadespassed a milestone earlier this month when official data showedwages growth caught up with inflation for the first time innearly four years, while unemployment sank to a five-year low.
Data on Tuesday showed Britain's economy racked up itsstrongest annual growth in more than six years in early 2014.
Wolfson, who sits in Britain's upper house of Parliament andis a prominent supporter of the prime minister's ConservativeParty, said although there were signs the economy was improvinghe remained concerned about the prospect of interest rate risesand house price inflation getting out of control.
"There is evidence, particularly in the south east (ofEngland), of a property bubble. There's no question that wheninterest rates go up that will moderate the recovery," he said.
Wolfson noted that Next's demographic was particularlyexposed to interest rates.
"A 25 to 40-year-old customer with children is more likelyto be exposed to rising interest rates than a younger or oldercustomer so Next is particularly vulnerable to rising interestrates," he said.
Next also said on Wednesday it will pay another specialdividend, its third this year, of 50 pence.
It will distribute surplus cash through more specialdividends as long as its share price remains above 6,400 pence.
($1 = 0.5936 British Pounds) (Reporting by James Davey, Editing by Paul Sandle and KateHolton)
Next (NXT)
