Next reports "above average" sales

News from Next was dominated on Wednesday by the magnanimity of chief executive Lord Wolfson who again this year has decided to share his bonus with staff who have worked for the retailer for three years.

It will give around 20,000 staff roughly 1.5% of salary in their May pay packet

Such news is uncharacteristic of the executive bonus climate today and has eclipsed another excellent set of data from the retailer.

Brand sales for the first thirteen weeks of the financial year were up 10.8%, of which 2.2% came from the opening of new space. While retail sales were up 8.8%, the Directory keeps pushing ahead with sales up 13.7%.

Sales have exceeded the 4%-8% full year guidance provided by the company in March and it is now increasing the sales guidance for the full year to 5.5%-9.5%.

"This new guidance might look conservative in the light of the first quarter's performance," the company said. "However, we always expected the first quarter to show above average sales growth as the comparative period last year suffered from a particularly cold spring and Easter holiday period."

The firm set a final ordinary dividend of 93p which will be paid in addition to the 50p special interim dividend. The company also announced that mid-point of its new Profit before tax guidance is now £770million and accordingly it is increasing its buy back price limit, to £64.

Investor response was relatively muted, with the shares rising just 1% by 9.30am to 6,555p.

It is the second year that Wolfson has waived his bonus and shared it with staff. Wolfson said the bonus, linked to the share price which has trebled in value in just three years, had become "more valuable than I could possibly have hoped".

His annual pay will be revealed in the firm's annual report tomorrow. Last year it was £4.6million.

In another boost to morale, he announced that sales staff and stock room assistants will receive a 37p an hour increase in their pay rate from 1 June.