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Warm weather cools Next sales

Sales are struggling at retailer Next after an unusually warm weather in September deterred customers from buying new winter clothing.
October 1, 2014

High-street retailer Next (NXT) has said an unusually warm September hindered third-quarter sales growth. Instead of the previously forecast 10 per cent growth, Next said sales improved 6 per cent during the period. But it's unlikely Next will be the only retailer affected by the unseasonably warm weather, as the UK Met Office revealed this September to be the driest on record since 1910. Sales of autumn and winter clothing have slumped, with many retailers forced to launch mid-season promotions to encourage customer spending.

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August was a strong month for Next, but management said if the warmer weather continues into October and becomes a longer-term trend, it would be forced to downgrade its full-year profit forecasts. At the moment, annual profits are still expected to fall in the range of £775m to £815m and the board is confident any lost sales will be recouped, as long as the weather turns colder.

Following the announcement, shares in Next fell nearly 4 per cent in early trading in London. Although other retailers did not reveal any figures, shares in high-street stalwarts Marks and Spencer (MKS) and Debenhams (DEB) also dipped.