UK retailer Next Plc  has increased its full-year target after reporting a 4.5 percent rise in first-half sales from the prior year.

The clothing and homewares retailer today (1 August) said retail sales were 0.2% up on last year, with sales from new space offsetting lower sales from like for like stores. Growth was largely driven by its directory division, which includes online revenue, with sales up 13.3% on last year, another strong all round performance.

Besides, total stock for the End of Season Sale was up 8.7% with cash recovery in line with the company’s forecast.

Looking forward, Next said it is modestly increasing and narrowing its sales and profit guidance ranges for the full year.

The company now expects profit before tax to increase between £575-620m, up on previous forecasts of £560-610m, and anticipates sales growth of 2% to 4.5% over the year. The announcement came as sales rose 4.5% over the first half, better than the 1-4% increase it previously forecast.

The company further noted that it remains its intention to buy back around 200 million pounds of shares this year. The effect of share buybacks and lower UK corporation tax rates on these estimates is to increase earnings per share by around 6% more than the growth in profit before tax.