* Inditex H1 net profit 375 mln euros; vs fcast 330-368 mln
* Next H1 pretax profit 185.5 mln stg; vs fcast 177-185 mln
* Inditex says to launch Zara online in Autumn/Winter 2010
* German HDE retail association sees 2009 sales down 2 pct
* Inditex, Next shares rise 4-5 percent
(Adds German retail association forecasts, updates shares)
By James Davey and Judy MacInnes
LONDON/MADRID, Sept 16 (Reuters) - Tight management of costs and stocks and better-than-expected summer sales helped two of Europe's top fashion retailers beat first-half profit forecasts, but they remained cautious on any revival in consumer spending.
Inditex, owner of the Zara chain and Europe's biggest clothing retailer, reported a shallower-than-expected 7.6 percent fall in net profit and also announced long-awaited plans to launch Zara online next year.
Next, Britain's second-largest fashion chain, posted a 6.9 percent rise in first-half pretax profit and raised its full-year guidance, but remained cautious on prospects for consumer spending as unemployment climbs.
Europe's clothing retailers have mostly had a tough time in the economic downturn, and while there are signs the recession is over in some countries, there are fears that consumers will hold back from discretionary spending to rebuild savings.
Retail sales in the European Union rose just 0.2 percent month-on-month in July and were down 0.9 percent year-on-year.
Germany's HDE retail association said on Wednesday it expected sales to fall around 2 percent in nominal terms this year, down slightly from its previous forecast.
Mid-market retailers like Next and larger British rival Marks & Spencer have been hard hit in the downturn, while more budget-focused groups like Inditex, Sweden's H&M and Britain's Primark have fared better.
At 1100 GMT Inditex shares were up 4 percent at 40.18 euros and Next was up 5 percent at 1,784 pence, both beating a 0.7 percent rise in the DJ Stoxx European retail index.
Bernstein analyst Luca Solca said results from both Inditex and Next showed the benefits of careful cost control and stock management, as well as favourable weather, and expected full-year consensus profit forecasts for both companies to rise.
He was particularly encouraged by Spanish group Inditex's plans to take Zara onto the Internet, saying a similar move by rival Hennes & Mauritz had given a big boost to sales.
"This is going to make consensus more positive about prospects for Inditex," he said.
BUYING CLOTHES ONLINE
Inditex, with over 4,400 stores in 73 countries, said it made net profit of 375 million euros ($549 million) in the six months to July 31, topping analysts' forecasts.
Sales were in line with estimates at 4.86 billion euros, up 9 percent in local currencies, and had continued at the same rate in the period from Aug 1 to Sept. 14.
Like-for-like sales in the first half were down 2 percent.
"We estimate like-for-like sales fell 3 percent in the first quarter so that means a drop of 1 percent in the second ... This trend is encouraging," said SocGen analyst Anne Critchlow.
That would beat recent declines in underlying sales from H&M and U.S. rival Gap
Inditex, whose brands include teen brand Bershka and underwear label Oysho, said it would target better second-half like-for-like sales.
It plans to launch Zara online in Autumn/Winter 2010, initially in Spain, France, Germany, UK, Italy and Portugal.
Online sales account for only about 3 to 5 percent of Europe's 300 billion euros a year clothing market, but consultancy Forrester believes they will grow by more than 50 percent in Britain and Germany by 2014.
Analysts estimate that Next, one of the pioneers of online fashion retailing through its Next Directory home shopping business, makes about 60 percent of Directory sales over the Internet. Next Directory made a profit of 83.3 million pounds ($137 million) in the first half on sales of 386.2 million.
Next said on Wednesday it had started to trade online in the United States and planned to launch a German language website.
Inditex declined to give revenue forecasts for Zara online.
Next, which also runs over 460 shops in Britain and Ireland, said it made an overall pretax profit of 185.5 million pounds in the six months ended July, beating analysts' forecasts.
Full-price like-for-like sales fell 1.2 percent.
The firm said it expected full-year profits to be close to last year's 429 million pounds, above analysts' consensus forecast of 407 million, according to Reuters Estimates.
But the improvement was due mainly to profit margins and Next stuck to its forecast for a 3.5 to 6.5 percent decline in second-half like-for-like sales at its shops. It said it was budgeting for a fall in underlying sales in Spring/Summer 2010.
"We may technically be in or out of recession but either way the vast majority of consumers haven't got more to spend this year than they had last year," Chief Executive Simon Wolfson told Reuters.
Inditex shares have lagged the DJ Stoxx European retail index by 3 percent this year and Next, hit hard as the recession took hold last year, has outperformed it by 38 percent.
Inditex shares trade at 20.3 times forecast earnings, just below H&M on 20.6 times, but well above Next on 11.5 times,. (Writing and additional reporting by Mark Potter; Editing by Greg Mahlich and Lin Noueihed)