Interim Management Statement

Next PLC
08 May 2008

Date:           Embargoed until 07.00am, Thursday 8 May 2008

Contacts:       Simon Wolfson, Chief Executive
                David Keens, Group Finance Director
                NEXT PLC
                Tel:  [phone]

                Alistair Mackinnon-Musson
                Nicola Savage
                Hudson Sandler
                Tel:      [phone]
                Email:  [e-mail]

                Photographs available:  http://www.next.co.uk/press/




                                    next plc

                          Interim Management Statement


FIRST QUARTER SALES

The combined sales of Next Retail and Next Directory for the first quarter from
27 January to 26 April 2008 were down 3.9% compared to the same period last
year.

Next Retail sales in the period were down 5.0% on last year.  Like for like
sales in the 340 stores that were unaffected by new openings were down 8.9%.

Next Directory sales were down 1.0% on last year.

The table below sets out the sales performance compared to last year.


Sales (£ millions)                 13 weeks to        13 weeks to
                                 26 April 2008      28 April 2007       Change

Next Retail                              518.1              545.7        -5.0%
Next Directory                           220.8              223.2        -1.0%

Total Next Brand                         738.9              768.9        -3.9%



SALES PROSPECTS

We remain cautious about the outlook. Financial pressures on our customers
resulting from cost increases in food, fuel, mortgage repayments and taxation
look set to continue.  However, we continue to believe that sales in the second
quarter will improve significantly as a consequence of last year's unusual
weather patterns and we have budgeted on this basis.  Even within the last
eleven days, Next Retail sales have picked up markedly with the arrival of
warmer weather and the cumulative performance from 27 January to Wednesday 7 May
has improved to -3.8% (with like for likes at -7.8%).

We now expect that total Next Retail sales for the first half will be down by
around -3.5% with like for like sales at the bottom end of our forecast range at
around -7%.  We had planned for weak demand and remain confident that we will
have less stock for the end of season Sale than we had at the same time last
year.  As a result, we are not planning any additional markdown activity.

We continue to anticipate Directory sales will be up between 0% and 2% for the
first half.


OPERATING UPDATES

We estimate that net additional space in Next Retail will be 110,000 square feet
in the first half and 275,000 in the second half, making 385,000 for the year.
The store refit programme continues as set out in our March announcement.   At
January 2009 we will be trading from 5.6 million square feet in total, of which
4 million will be new, refitted or redecorated in the new format.

Despite the difficult economic climate we continue to see no deterioration in
Next Directory bad debt, which is a result of tighter credit controls.


PROFIT PROSPECTS

Our internal forecasts for full year profits are closely in line with market
consensus. The majority of forecasts are in the range £475m to £505m for profit
before interest and £430m to £460m for profit after interest.


SHARE BUYBACKS

Prior to our January 2008 year end, we entered into contingent share purchase
contracts as shown in our Annual Report. This year these contracts have
delivered 2.2 million shares at a cost of £30m and if these contracts continue
to maturity then a further 1.7 million shares will be purchased for cancellation
at a cost of £23m.


AGM 13 May 2008

This Interim Management Statement replaces the trading update which in previous
years has been given on the day of the AGM.  Consequently no further Trading
Statement is intended until after our half year, which ends on 26 July 2008.



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