LONDON, May 8 (Reuters) - Next, Britain's secondbiggest clothing retailer, posted a small rise in quarterlysales, with trade picking up after a slow start to its financialyear as the weather improved.
Next, which trades from over 500 stores in Britain andIreland and almost 200 stores overseas, as well as via aDirectory internet and catalogue business, said on Wednesdaytotal sales rose 2.2 percent in the 14 weeks to May 4, itsfiscal first quarter.
The outcome was consistent with previous sales guidance forthe full 2013-14 year of growth of between 1 percent and 4percent. That guidance was maintained.
"Trading has been volatile and particularly poor throughMarch and early April. The marked upturn in sales in mid-Aprilcorresponds to the break in the very cold weather," the firmsaid.
Retail sales fell 1.9 percent, while Directory sales were up8.9 percent.
Many British retailers have been finding the going tough ashousehold incomes continue to fall behind the rate of inflation.
Next has generally defied the economic gloom, helped by itsstrong online offer, a constant stream of new store openings anddiversification into homewares and overseas markets.
However, it said it remained cautious about the consumerenvironment.
"We anticipate that the continuing decline in real earningswill depress discretionary spending for at least the next 18months, if not longer," it said.
The company's shares have increased 22 percent over the lastsix months, closing Tuesday at 4,425 pence, valuing the businessat 7.1 billion pounds ($11 billion).
The firm maintained guidance for 2013-14 year pretax profitof 615-665 million pounds versus 622 million pounds in 2012-13.That would give growth in earnings per share of 4-13 percent,assuming completion of a planned 250 million pounds sharebuyback.
Next (NXT)
