Next tears a strip off M&S with £163m profit

Next piled the pressure on its high street rival Marks & Spencer today with an impressive set of financial results.

The clothing chain easily beat City forecasts with a 30 per cent surge in pre-tax profits to £163 million for the first half of its financial year.

The performance was seen as all the more impressive because clothes retailers are generally thought to have had a tough summer due to the wet weather. Sales from the 350 shops were 16 per cent up on last year at £924.3 million.

Excluding new store openings sales were 2.6 per cent up on the same period last year. Sales from the Next directory were up 12.6 per cent at £278.1 million. Group sales were ?1.293 billion, also ahead of City expectations.

The strong performance of Next is yet another headache for the once dominant M&S, which is rapidly losing market share to fleeter-footed competitors.

Last week tycoon Philip Green, who controls a huge retail empire ranging from Bhs to Top Shop, unveiled a new aggressive advertising campaign.

M&S has also recently lost its crown as Britain's biggest clothes retailer to Asda.

Next, under the leadership of chief executive Simon Wolfson, is the City's new retail darling.

Mr Wolfson said the results were better than expected. "There is no secret. We are very clear in what we set out to achieve - providing great product ranges for our customers," he said.