The company said that in the six months ending 24 December, sales for its Next Directory and Next Retail businesses were up by 2.8% compared to the same period in 2005.

Next Directory, the online and catalogue arm of its business, experienced a 9% increase in sales, while figures for its retail division were up by 0.8%.

For this reason, said the company, profit forecasts are likely to be slightly above city predictions, within the range of between £463m and £473m.

"In a challenging year we will have increased group profits through good control of stocks, margins and costs, along with a strong sales performance in Next Directory," it said.

"This is a pretty good result for the clothing sector," Tony Shiret, retail analyst at Credit Suisse, told the 'Telegraph'.

"It has been a great Christmas for consumers, and not a bad Christmas for shareholders."