Next softens doom and gloom forecasts despite fall in profits

Upbeat chairman says situation is less challenging than six months ago and that Brexit-fuelled fall in pound and resultant price rises will start to ebb

Next said the outlook for sales was brighter than its previous gloomy predictions as it reported a near 10% fall in first half profits.

At the start of 2017, the Next chief executive, Simon Wolfson, warned of a tough year ahead but on Thursday he softened his stance: "While the external environment looks set to remain difficult, from where we stand today our prospects appear somewhat less challenging that they did six months ago."

Related: John Lewis profits halve as chairman warns over Brexit uncertainty