Next cheers retail sector with bumper profits and price drop

Next says the consumer environment looks more benign than it has for a number of years. Photograph: Ian West/PA

Next has said the prices it charges customers are falling, as the fashion and homeware retailer reported bumper profits and pointed to an improving UK consumer backdrop.

The chief executive, Simon Wolfson, said it had been a long time since the group had started a financial year on such a positive note after announcing strong sales and growth results for the year to January.