Next profits fall

Next has reported a fall in profits in line with expectations in the year to January 1

Next said that it had come within the guidance for sales set out in March 2008. Retail like for likes were down - 6.5 per cent, within the guidance range of -3 cent to -7 per cent. Directory sales were up 2.1 per cent, just ahead of our range of 0 per cent to 2 per cent. Pre-tax profits fell to £428.8m from £498.1m the previous year from revenues that fell to £3.27bn from £3.33bn.

" Trading conditions in the year ahead will continue to be tough. The current economic climate in the UK is unstable and this brings short term volatility in our sales which, in turn, makes forecasting difficult. In addition, the weakness of Sterling against the US Dollar and the Euro, our main purchasing currencies, has brought further challenges to our buying teams. Their response has been excellent, working hard with our suppliers to protect our customers from unaffordable price increases and our own margins, as far as possible" it said