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| Next rings alarm over warm weather impact on sales | Next rings alarm over warm weather impact on sales |
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| Fashion retailer Next has warned that it will have to lower its profits guidance for this year if the Indian summer continues throughout October. | Fashion retailer Next has warned that it will have to lower its profits guidance for this year if the Indian summer continues throughout October. |
| September is an important month for the industry but, with slower demand for jumpers and coats, Next's sales are currently up 6 per cent in the quarter to the end of October, rather than the 10 per cent previously forecast for the period. | September is an important month for the industry but, with slower demand for jumpers and coats, Next's sales are currently up 6 per cent in the quarter to the end of October, rather than the 10 per cent previously forecast for the period. |
| It hopes that it will recover some of the lost sales when the weather turns but if the unusually warm conditions continue for the full duration of October it is likely to lower its full-year profit guidance of £775 million to £815 million. | It hopes that it will recover some of the lost sales when the weather turns but if the unusually warm conditions continue for the full duration of October it is likely to lower its full-year profit guidance of £775 million to £815 million. |
| The group, which overtook Marks & Spencer with a £695 million annual profits haul earlier this year, had been experiencing its strongest sales growth for many years prior to the slower performance seen in September. | The group, which overtook Marks & Spencer with a £695 million annual profits haul earlier this year, had been experiencing its strongest sales growth for many years prior to the slower performance seen in September. |
| Next shares opened 5 per cent lower, while other retailers were also impacted by the update. Marks & Spencer dropped 4 per cent and Sports Direct International fell 1 per cent. | Next shares opened 5 per cent lower, while other retailers were also impacted by the update. Marks & Spencer dropped 4 per cent and Sports Direct International fell 1 per cent. |
| Next said the tougher trading in September followed a period of cooler weather in August, which resulted in several very strong weeks for sales. | |
| The company will provide a further update on the third quarter on October 29. | |
| Freddie George, a retail analyst at Cantor Fitzgerald, has retained his buy rating on the stock and said the underlying trends for Next remain positive, in contrast with the difficult conditions facing M&S and Debenhams. | |
| He added: "The impact of the mild weather, which we have been flagging up over the last two weeks, is impacting all retailers in the UK and is only a temporary phenomenon. | |
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