Next warns warm weather may hit profits

By Petah Marian

Next has warned that if warm weather continues though October, it is likely to have to downgrade its full year profit expectations.

The retailer said that cooler weather in August led to several very strong weeks, but warmer weather in the “more important” month of September has had the reverse effect. This has meant that quarter three sales are up 6%, which is lower than its previous forecast of a 10% rise.

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It said that its full year profit forecast remains within previous guidance, and it expects that some lost sales will be regained when the weather turns. “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 £775m to £815m.”

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