Interest will start16 Sep 2009 17:07
LONDON -(Dow Jones)- U.K. clothing and houseware retailer Next PLC (NXT.LN) Wednesday raised its full-year profit guidance for the second time in two months, underpinned by its tight grip on costs and inventory, as it beat market expectations with a 6.9% rise in first-half pretax profit.
Next said it expects to deliver annual pretax profit "close" to last year's GBP429 million, subject to its sales performance in the key fourth quarter, which includes Christmas. The market consensus is just above GBP400 million.
Analysts increased their earnings estimates in July after the group raised its full-year profit guidance on better-than-expected product negotiations with suppliers and a sales boost from warm weather in May and June.
Next, which competes against Marks & Spencer Group PLC (MKS.LN), Debenhams PLC (DEB.LN) and John Lewis, said the consumer recession has been less extreme than many had predicted, adding in its statement that "it’s been a recession, not Armageddon."