* Raises year profit guidance to 635-675 mln stg
* H1 total sales up 2.3 pct
* H1 retail sales down 0.9 pct, Directory sales up 8.3 pct
* Says expects little change to the consumer environment
* Shares rise up to 3.6 pct
By James Davey
LONDON, July 30 (Reuters) - Next, Britain'ssecond-biggest clothing retailer, played down talk of animminent consumer recovery by saying it does not expect anysignificant change to the trading environment for over a year.
Official data last week showed Britain's economy sped upbetween April and June on the back of stronger spending byconsumers and businesses.
But Next Chief Executive Simon Wolfson played down thesignificance of the latest set of GDP numbers and saidcommentary in the wake of the data had been overdone.
"Reality is always far more important than perception," hetold Reuters on Tuesday.
"For any sort of consumer recovery to happen we need to seewages growing faster than inflation, which means inflation needsto come down or we need more (economic) growth."
Wolfson, a prominent supporter of Britain's rulingConservative Party who sits in the upper house of Parliament,said he did not see that happening over the next 16 months.
"The problem isn't that wages need to go up, that woulditself be inflationary, the problem is we need real growth inthe economy."
Wolfson was speaking after Next raised its full-year profitexpectations after sales growth edged up in its second quarter,driven by a robust performance from its Directory internet andcatalogue business and better weather.
That sent its shares, which have risen by more than a halfover the last year, up to 3.6 percent higher.
The group, which also trades from over 500 stores in Britainand Ireland and about 200 stores overseas, said total sales rose2.3 percent in the 26 weeks to July 27.
That was just above first-quarter growth of 2.2 percent andconsistent with previous sales guidance for the full 2013-14financial year of growth of 1-4 percent.
Next adjusted that guidance to growth of 1.5-3.5 percent.
It also raised and narrowed guidance for pretax profit to635-675 million pounds ($975 million-$1.0 billion) from 615-665million pounds previously, and for growth in earnings per shareto 8-15 percent from 4-13 percent previously, assuming a sharebuyback of 250-350 million pounds.
The firm has generally been able to defy the economicdownturn, helped by its strong online offer, a constant streamof profitable new store openings and diversification intohomewares and overseas markets.
Next said sales in its stores were down 0.9 percent in theperiod, while Directory sales were up 8.3 percent.
The firm had a much smaller end of season sale, with 20percent less stock than last year, meaning lower markdown salesand a 10 million pounds boost to first half profit.
"Another strong performance from the home delivery serviceprovided some ballast to the retailer's numbers. In anultra-volatile retail climate this consistency is key," saidJames McGregor, director of retail consultants, Retail Remedy.
Next said consumers are becoming more spontaneous in theirpurchasing habits.
"As a result, weekly sales are more affected by short termevents such as a change in the weather, the timing of BankHolidays, (and) school holidays," it said.
Next shares were up 133 pence at 5,040 pence at 0835 GMT,valuing the firm at 7.84 billion pounds.
Next (NXT)
