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You can find the current article at its original source at http://www.theguardian.com/business/2016/jan/05/next-reports-disappointing-christmas-after-mild-autumn
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| Next reports disappointing Christmas after mild autumn | Next reports disappointing Christmas after mild autumn |
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| Retailer Next has reported a “disappointing” performance over Christmas, with sales hit by the unusually warm weather in November and December. | Retailer Next has reported a “disappointing” performance over Christmas, with sales hit by the unusually warm weather in November and December. |
| The group, which is the first of the major retailers to update on its festive performance, has lowered its profits guidance for the full year. | The group, which is the first of the major retailers to update on its festive performance, has lowered its profits guidance for the full year. |
| As well as the weather, the group said it had been hit by poor stock availability and the increasingly competitive online market. | As well as the weather, the group said it had been hit by poor stock availability and the increasingly competitive online market. |
| Sales at the group’s high street stores chain fell by 0.5% between 26 October and 24 December, but its Directory sales were up by 2%. Overall sales were up by 0.4%, below City forecasts of around 4%. | Sales at the group’s high street stores chain fell by 0.5% between 26 October and 24 December, but its Directory sales were up by 2%. Overall sales were up by 0.4%, below City forecasts of around 4%. |
| While the warm weather was largely to blame for the sales slowdown, chief executive Lord Wolfson said: “We would not want to allow difficult trading conditions to mask any mistakes and challenges faced by the business. | While the warm weather was largely to blame for the sales slowdown, chief executive Lord Wolfson said: “We would not want to allow difficult trading conditions to mask any mistakes and challenges faced by the business. |
| “Specifically, we believe that Next Directory’s disappointing sales were compounded by poor stock availability from October onwards. In addition, the online competitive environment is getting tougher as industry-wide service propositions catch up with the Next Directory.” | “Specifically, we believe that Next Directory’s disappointing sales were compounded by poor stock availability from October onwards. In addition, the online competitive environment is getting tougher as industry-wide service propositions catch up with the Next Directory.” |
| It was the mildest December in the UK since records began and Next provided a graph to show the impact of the weather on its sales. | |
| Next blames "unusually warm weather" for disappointing performance over Christmas, and here's the proof: pic.twitter.com/qKdGbEcpsk | Next blames "unusually warm weather" for disappointing performance over Christmas, and here's the proof: pic.twitter.com/qKdGbEcpsk |
| The group has revised its full-year profit estimate to £817m, an increase of 4.4% on the previous year. This is at the lower end of its previous range of between £810m and £845m, although chief executive Lord Wolfson said the figure could increase or decrease by £7m depending on how trading goes in January. | The group has revised its full-year profit estimate to £817m, an increase of 4.4% on the previous year. This is at the lower end of its previous range of between £810m and £845m, although chief executive Lord Wolfson said the figure could increase or decrease by £7m depending on how trading goes in January. |
| Next remained aloof from the widespread discounting that swept the retail sector ahead of Christmas, starting its sale on Boxing Day, and said it had maintained margins as a result. | Next remained aloof from the widespread discounting that swept the retail sector ahead of Christmas, starting its sale on Boxing Day, and said it had maintained margins as a result. |
| The disappointing performance from Next over the festive period will raise fears that other retailers will have fared even worse, particularly Marks & Spencer, which is due to update the market on Thursday. John Lewis reports on Wednesday. | The disappointing performance from Next over the festive period will raise fears that other retailers will have fared even worse, particularly Marks & Spencer, which is due to update the market on Thursday. John Lewis reports on Wednesday. |
| Shares in Next were leading the FTSE 100 fallers in early trading, down 5% at £68.30. Shares in M&S fell 1.5% to 428.5p. | |
| Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said that Next had provided “a stark reminder that the situation within retail is precarious.” | |
| “Warm weather has compounded the company’s own admission that its stock availability has more recently been insufficient, whilst there are also somewhat ominous, if unsurprising, comments on the ferocity of competition around its flagship Directory business which are unsettling.” | |
| He noted that the group’s shares had dipped 6.5% over the last three months even prior to today’s fall, but said that Next remains “one of the stronger players in the sector.” |