Fashion retailer Next said it had performed well despite "anaemic" consumer demand causing a "perfect economic storm" which enveloped the retail sector in 2011.

Revenue rose to £3,506m from £3,454m the previous year. This was ahead of market expectations of sales of £3.4bn.

Revenue from the high street, in the company's core retail chain - fell 1.4 per cent to £2,191m, but Next Directory, the online and postal business, boosted sales by 16.4 per cent to £1,089m, and the international division grew the top line by 13.4 per cent to £76.3m.

Next was cautious in predictions for the coming year, expecting underlying retail sales to remain negative. This year's first quarter's sales were likely to be worse than last year's, as a warm Easter and Royal Wedding, which boosted sales in 2011, are not necessarily going to happen again this year.

It said it would temper the hit  through developing Next Directory, in the hope it continues to be profitable. The company also plans to raise its final dividend to 62.5 pence, taking the total dividend for the year to 90 pence, an increase of 15 per cent.