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Warmer weather plays havoc with Next's sales growth

Warmer weather plays havoc with Next's sales growth

While the Indian summer has been greatly received by the British public, it has not been so kind to retailer Next (LON:NXT).

The clothing powerhouse said the warm weather meant sales growth had been slower than previously expected at 6% rather than the 10% previously forecast.

A colder August resulted in more shoppers hitting the store; however, the unexpected warm weather in September kept shoppers away as they basked in the last rays of the British summer.

The fashion chain kept financial forecasts for the full year unchanged as it may make up lost sales, but it warned if the warm snap continues throughout October full year profit guidance may be lowered from the current £775mln to £815mln.

Shares fell 3.8% to 6,605p.

City firm Investec said the announcement is likely to hit sentiment across the clothing sector, and that prediction seems on the money, with Marks & Spencer's shares off 2.2%.

The median forecast for this year's profit before tax was £798mln, but that number is sure to change. Investec is one of the first to change its numbers, slashing its profit before tax forecast from £510mln to £480mln.

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