UK-based retailer Next slashed its forecast for the full year, after the third-quarter sales fell short of the company’s expectations.
In an interim management statement, the company said its sales for the third quarter to October 25 grew 5.4%, compared to the company’s original expectation of 10%.
Next retail sales grew 2.4% in the quarter, while directory sales climbed 9.7%.
Last month, the retailer said that it would reduce its sales and profit expectations if colder weather did not materialise during October. In the event, October remained unseasonably warm, the company said today.
While the season started off well with a cool August, this was more than offset by much weaker sales in September and October, thecompany said.
After considering the volatility of current trading and the very strong fourth quarter performance last year, the firm has moderated its expectations for the fourth quarter this year.
The company now budgets full price sales in the fourth quarter to be within a range of negative 2% to positive 4%, with central profit forecast for the year based on final quarter sales of 1% growth. This compares to the firm’s initial fourth quarter expectation of positive 4%.