Next trading in line in first half

Retailer Next said growth in its online business and the opening of new stores offset a drop in like-for-like sales in the first half.

The firm also maintained its outlook for the year despite noting rocky August and September trading.

In the first half revenue was up 4.8% to £1.64bn and underlying profit was up 10.2% to £251m.

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Profits at company's retail arm crept ahead by 0.2% to £122.7m, which included a fall in like-for-like sales of £18m. New profitable space added £14m.

However, its online Next Directory saw sales jump 13.3% to £551.7m, boosting profits by £26m.

Earnings per share were up 18.7% and rose faster than profit, mainly as a result of continued share buybacks and lower tax rates.

Next increased its interim dividend by 12.7% to 31p and said it expected to increase the full year amount broadly in line with its growth in underlying earnings per share.

The firm said it was on track to meet market expectations and maintain the full year financial guidance given in its August trading statement, with sales, profits and earnings per share all moving forward on last year.

However it said it had seen disappointing sales in August and early September and remained cautious on the outlook.