CLOTHING group Next buoyed the retail sector by saying a bumper Christmas would lift its full year profits above forecasts.

Next said sales of full price goods during the week before Christmas had been well above expectations.

The group said that clearance rates during its end-of-season sale had been significantly higher than anticipated.

It rounded off an upbeat trading statement by saying its mail order operation, Next Directory, finished the season strongly, benefiting from operational improvements.

The group said it was expecting full year pre-tax profits of not less than £340m, against £301m last year.

That would result in earnings per share growing by 30 per cent, the group said.

On Friday, WHSmith disappointed the market with a profits warning following poor Christmas sales, saying annual profits would be below market expectations.

Before Christmas, discount clothing retailer Matalan also warned investors that early second half trading had worsened and that annual pre-tax profits would fall short of expectations.

However, according to the CBI, fears of a slowdown in high street spending at Christmas may have been overblown, with 54 per cent of retailers enjoying sales growth during the period.

A survey by the organisation found sales in December were sharply higher than last year and typical of the season during the past decade.

* Wine warehouse chain Majestic was another firm toasting a vintage Christmas trading period, with UK sales rising more than seven per cent.

Majestic said French wines had been among the best-sellers, with brands from New Zealand and Chile also popular.

Beer sales grew strongly during the eight weeks from November 6 to New Year's Eve, while record numbers of buyers were celebrating the festive period with champagne.

Majestic said like-for-like sales at its 113 UK outlets, including branches at Cirencester and Warrington, had risen by 7.4 per cent in the period.