HIGH street retailers saw shares hit yesterday after Next warned its profits would slip lower due to the “unseasonably warm” October weather that impacted its winter clothing sales.
Next said third quarter sales were up 5.4 per cent, almost half the 10 per cent expected, knocking shares as much as three per cent during early trading.
Final quarter sales are now expected to range between a decline of two per cent and an increase of four per cent, while profits are expected to be up around a per cent. Down from previous guidance of four per cent.
Next is generally regarded as more resilient in the sector so the disappointing news took its toll on the share price of rivals Marks and Spencer and Debenhams as their shares fell 0.64 per cent and 0.47 per cent respectively yesterday.
Next’s shares closed down 0.3 per cent at 6,415p.