Clothing giant Next yesterday issued a trading update which revealed sales at its High Street shops have slipped even further since it was forced to issue a profits warning in March.

The fashion retailer said sales since February 1 fell 0.5% compared with the previous year, despite there being 11% more space in its shops.

However, home shopping sales from Next Directory have risen 3% during the spring, meaning that, overall, its sales have improved 0.5%.

That dispelled some of the gloom felt in the City about the March profit warning, and the company's shares were among the day's star performers, rising by 33.5p to 521p.

A spokesman for the company said that it had sorted out its problems in the buying department. ''It's good news all round,'' he added.