Next welcomes warm weather sales

Next had already said it expected a tough 2008

Shares in clothing retailer Next added more than 5% after it said warm weather had improved its sales as it tries to recover from a tough start to the year.

Sales had "picked up markedly" in recent weeks, but the firm's outlook was still cautious.

Rising food, fuel and mortgage costs were adding to the financial pressures on customers, it said.

Like-for-like shop sales fell 8.9% in the 13 weeks to 26 April. Its online and catalogue arm saw a 1% sales drop.

The comments, whilst understandable given the wider economic limitations, were not especially bullish Richard Hunter Hargreaves Lansdowne Check Next shares

Earlier this year, Next predicted a like-for-like sales would fall between 4% and 7% in the first half of the year.

It now says that this was likely to be at the lower end of that prediction.

'Optimism lacking'

"We had planned for weak demand and remain confident that we will have less stock for the end-of-season sale than we had at the same time last year," it said.

"As a result, we are not planning any additional mark-down activity."

The firm had provided "little scope for optimism in the recent past", said Richard Hunter, head of UK Equities at Hargreaves Lansdowne stockbrokers.

"The comments, whilst understandable given the wider economic limitations, were not especially bullish.

"It seems that even though full-year profits should be in line with expectations, this is largely due to cost control rather than an increase in sales."