Next weathers perfect storm

Fashion retail chain Next said the year to the end of January finished well after 2011 had presented the retail sector with 'the perfect economic storm'.

Revenue rose to £3,506m from £3,454m the year before, ahead of market expectations of sales of £3.4bn. This was despite the core Retail chain - the High Street shops - seeing revenue ease 1.4% to £2,191m from £2,222m. The online and postal business, Next Directory, more than picked up the slack, growing sales by 16.4% to £1,089m from £936m the year before. The International division also had a good year, growing the top line by 13.4% to £76.3m from £67.3m the previous year.

Underlying profit before tax from the continuing business climbed 5.0% to £570.3m from £543.4m the year before, and this too was ahead of expectations; the market had pencilled in a figure of £566.3m.

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The full year dividend has been increased by 15% to 90p, in line with the growth in earnings per share, but the final dividend will be paid a month later than usual to coincide with the peak in Next's summer trading cash flows.

More to follow ...

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