Next has expanded its floor space

The fashion and homeware group saw total sales increase by 15.9% compared with the same period in 2003, despite the wet summer weather.

Pre-tax profits were up by 30% to �162.7m ($292.6m), ahead of forecasts.

"We continue to put all of our energy into providing well-styled, good quality, value-for-money products," said chairman David Jones.

This is the quality play of the big clothing stocks Iain McDonald of brokers Numis See Next's latest share price

On Tuesday, shares in Next reached their all-time high of 1574p, climbing 3.8% before dropping back to end 2.7% higher at 1558p.

Next is the UK's third-biggest clothing retailer, and has expanded its floor space by 21% compared with last year.

Sales from new sales space accounted for 13.3% of the revenue increase, with like-for-like sales up 2.6%.

"They're great numbers, there's no doubt about it. They're sticking to a format which works well, and their performance in the market is exceptionally good," said Iain McDonald of brokers Numis.

"This is the quality play of the big clothing stocks."

However, like-for-like sales growth slowed to 2.1% in the past six weeks, as the unusually wet weather hit business.

Chairman Mr Jones warned that the forthcoming trading environment may become "more difficult" but was confident the company would continue to move forward.