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Retailers: Next rebounds, John Lewis flags

Conflicting fortunes Thursday (September 17) for UK retailers.

Clothing chain Next raised its profit outlook for the second time in two months.

That after it eked out a first-half profit of 9 million pounds, or about about 11.6 million dollars.

The group said recent trading saw full-price sales up 4% on last year.

It said it was helped by consumers taking fewer overseas holidays.

After returns to profit this week for H&M and Zara-owner Inditex, the numbers add to signs of a rebound for clothing stores.

Times seem to be tougher at general retailer John Lewis.

The partnership on Thursday reported a first-half loss of 71 million dollars.

Earnings were hit by stores closures and big spending on low-margin products like toilet paper.

John Lewis says the hit to trading from health worries has put it in the same position it was in after World War Two.

As a result it says it will be unable to pay its usual bonus to staff.

The firm says its worst-case scenario for the full year set out in April remains valid.

That foresees a 35% drop in sales at John Lewis department stores, and 5% at Waitrose, its high-end supermarket chain.