Retailing will feel like walking up the down escalator - we will have to work
hard to stand still," Simon
Wolfson, the chief executive said in a statement on Thursday.
Britain's High Street retailers have been struggling since Christmas as
shoppers have stopped spending in the face of the Government's austerity
measures, a struggling economy and high unemployment.
"The consumer environment is likely to be dominated by the challenges of
global inflation, public sector cuts and limited growth in consumer credit,"
Mr Wolfson said.
Average prices at Next, which runs over 500 stores in Britain and Ireland as
well as the Directory home shopping business, have risen about 6pc so far
this year but it expected rises of between 8pc and 10pc in the second half.
Next estimated total first-half sales would be in a range of down 0.5pc to up
2.5pc.
If total sales for the 2011-12 year fell within this range, Next said pretax
profit would be between £520m and £570m - in line with current market
expectations.
Next made a pretax profit of £551m in the year to end-January. That was
in line with company guidance of £540m-£555m and up from £505m in 2009/10.
Revenues rose 1pc to £3.45bn.
The company is paying 53pc final dividend on July 1. This takes the total
dividend up 18pc to 78p.
"Dividend cover remains a healthy 2.8 times. Given our prospects for further
cash inflows and the current level of cover, we expect to raise dividends in
the year ahead," Next said.
Shares in Next, which have lost 9pc, rose 6.8pc.
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