A late rush lifted Next's sales

The store said underlying sales grew by 2.8% during the period from 4 August to 24 December, beating forecasts of 2%.

As a result the retailer said it had raised its expected full-year profits to at least �340m ($615m).

A late surge in Christmas sales helped Next, and a CBI survey of retailers found this was a common trend.

The CBI survey said retail sales for the first three weeks of December were "sharply higher" than the previous year.

Better late than never

Next is the first major clothing chain to report on how trading over the festive period went.

Sales took off the Saturday before Christmas Simon Wolfson, Next chief executive Next share price

Analysts expect the firm to have done better than many of its rivals, with several reports in the weeks leading up to Christmas saying that stores were struggling.

The clothing sector has already seen two profit warnings, one from Austin Reed and other from discount chain Matalan.

Next said its full price sales during the Christmas week were "well above" its expectations.

"It all happened very late for us," said chief executive Simon Wolfson in an interview with the Reuters news agency.

"Sales took off the Saturday before Christmas. We had three disappointing weeks but that was more than made up for in the last week."

Total sales from 4 August to 24 December in Next's retail division were 15.8% up on last year.

The underlying sales growth of 2.8% included 30 stores that were affected by new store openings and extensions.

Stripping out these stores, underlying sales at Next's other 274 outlets grew by 4.7%.

Investors cheered the figures, sending Next shares up 120 pence, or 10.5%, to 1260p.

Growing trend

The last minute surge in sales appears to have been a common occurrence across the sector, according to the CBI.

Christmas shoppers are leaving it later each year

"Following a slow start to Christmas trading many retailers saw sales gather momentum as the big day drew closer, reflecting the changing patterns of Christmas shopping of recent years," said CBI chief economic adviser, Ian McCafferty.

"However, some retailers have had to bring forward New Year sales and offer discounts to boost turnover.

"Consumers' keenness for a bargain, and the intensity of competition in the high street, are keeping retailers on their toes."

The survey found 54% of firms reported sales up during December, against 21% who saw lower sales.

The balance of plus 33 was up on November's figure of plus 19.

Alexon sales slip

While Next was reporting strong sales, there was less impressive news from clothing retailer Alexon .

The firm, which owns Dolcis and Bay Trading outlets, said underlying sales fell 1% in the six weeks to 3 January following sluggish pre-Christmas trading.

But Alexon said it still expected to deliver full-year operating profits of a least �32.4m.