Next appears to have defied gloomy analyst predictions, who forecast this Christmas would be the worst for twenty years for the retail industry.

Next's shares surged more than 5% in early trading on Wednesday, rising 31.5p to 545p by 0920 GMT.

However sales from Next's mail order catalogues proved disappointing.

The recovery in sales in welcome news for Next

Next said shop sales improved by 17% in the month to Christmas Eve compared with the same time the previous year.

In the six months to December 24, sales from its stores increased by 13.5%, although both figures were buoyed by more store openings. Shop floor space rose 11% during the period.

Meanwhile sales at Next Directory slumped 2.5% due to printing problems.

Mark Charnock, retail analyst at stockbroker Charterhouse Tilney said: "This is only one part of the Christmas picture but it does suggest it has not been such a disaster on the high street as some predicted."