News that trading in October was weaker than expected for high street stalwart Next (NXT) shouldn't have come as much of a surprise. After all, the company had warned at the end of September that if the weather didn't start to cool off, sales would slip. Accordingly, as September's balmy climes lingered into October, so shoppers shunned the autumnal garments on offer. As a result, third quarter sales grew just 5.4 per cent, compared with original guidance of 10 per cent growth.
However, the result is still disappointing and made worse by the fact that management has also pulled back its full-year profit guidance, after warning that fourth-quarter sales were unlikely to be as buoyant as previously thought. Apparently, the group faces very strong comparatives and is now budgeting for full-price sales in the final quarter to range from a 2 per cent decline to a 4 per cent gain. Accordingly, group profit is now expected to be 3 per cent lower that forecast, at £770m, with a range of £750m to £790m. That would represent an 8 to 14 per cent rise on last year. Sales are forecast to grow 6 to 8 per cent, down from previous guidance of 7 to 10 per cent growth
