British fashion retailer Next has issued a warning concerning its full-year profit forecast, after warm weather hit its sales, days before its biannual investors meeting.
The unseasonably warm weather during “the more important month of September” have impacted Next's sales, after cooler weather throughout the month of August are said to have resulted in several weeks of strong sales, reported the company. Next warns its full-year profits may be affected if the mild weather continues throughout October, as it has led to many shoppers delaying the purchase of their winter wardrobe.
“At present our profit forecast for the full year remains within our previous guidance given on 29 July and reiterated on 11 September, and our experience suggests that some lost sales are regained when the weather turns,” said the company in a statement released this morning.
“However, if this unusually warm weather continues for the full duration of October then we are likely to lower our full year profit guidance range of 775 million pounds to 815 million pounds.” Next shares dropped 4.5 percent after issuing the statement, adding that “unseasonably warm weather” halted third quarter sales growth to 6 percent, down from predictations of 10 percent.
Next is set to publish its interim management statement, which covers the thirteen weeks to 25 October, on Wednesday 29 October.