But Next fights back in tough year

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

After a difficult year in which retail observers have been asking whether the chain was outdated, Wolfson today reported a decent Christmas trading period.

Sales at the retail and Next Directory arm were up 0.3% for the period from 30 July to 24 December.

Although like-for-like sales were down 3.2%, this was slightly better than the City had feared.

Next was able to increase profit forecasts for the year to between £492 million and £502 million - a rise of around £10 million.

Wolfson said that the rise in profits was due to "not marking stuff down in the run-up to Christmas, and the improvement made to the brands".

The shares, which were the second biggest riser in the FTSE 100 yesterday, fell 59p to 1607p today as the City panicked about the prospects for all retailers. At that price, Next is valued at around £3.3 billion by the stock market.

Wolfson, who has been chief executive since 2001 but is still only 40, said he had no plans to step down any time soon.

Broker Panmure Gordon said in a note to clients today: "As always, Next has managed its profits well. Less good news is that it does not expect like-for-like sales to recover to positive territory in 2008-9."

Panmure also upgraded Marks & Spencer shares from hold to buy on the back of the Next numbers and pointed to the chain's "defensive characteristics in what is likely to be a difficult 2008".

Like all consumer businesses, Next is nervous about the coming year due to a "worsening environment".

The group said: "Whilst trading has been difficult, the financial performance has been good, a result of excellent cost control and careful management of our balance sheet."

Next will report results for the year to 26 January on 18 March.