Next PLC (LSE:NXT) results back in March raised questions about whether the clothing retailer had gone ex-growth.
Sales for the first eight weeks of the 2023 financial year were down 2% it has already revealed and guidance at the final results was for a similar decline for the first quarter, sliding to a 4% fall in the second.
For the full year, growth is seen coming in the second half, with profit before tax to fall to £795mln from £869mln last year.
After last year saw industry sales booming in spring and early summer on the back of favourable weather and pent-up demand for normal life, this year’s spring weather has been cold and wet.
“Consumers are shopping by need, so we expect a fairly subdued start against tough comparatives,” said analysts at broker Peel Hunt.
“Given the poor weather in April, we struggle to see any improvement.”
Susannah Streeter, head of markets at Hargreaves Lansdown, said the cost-of-living headwinds continue to blow a storm so sales at Next will be watched closely to see if recent price hikes are putting off shoppers.
“Although Next delivered full year profits ahead of guidance, painfully high inflation may mean loyal customers will be visiting less frequently, lured away by offers further down the value chain,” she said.