Fashion retailer Next (LON:NXT) blamed warm autumn weather for a disappointing high street performance in the fourth quarter.
Next said sales in its shops fell 0.5% between October 26 and December 24, although the figure for the year to January 2 was up 2.1%.
Online sales from October 26 rose 2% and by 6.1% in the last year, with poor stock availability limiting sales in the final three months.
Total sales rose 0.4% and 3.7% in the same periods respectively. The latter figure is just below the bottom end of its previous guidance of 4% to 6%.
Next did not discount stock at any time before its end of season sale, so gross margins were maintained.
Stock for the end of season sale was 7% lower than last year and clearance rates were broadly in line with last year.
Chief executive Simon Wolfson said: "Whilst warm weather may have been the main reason for a difficult fourth quarter, we would not want to allow difficult trading conditions to mask any mistakes and challenges faced by the business.
"Specifically, we believe Next Directory's disappointing sales were compounded by poor stock availability from October onwards.
"In addition, the online competitive environment is getting tougher."
Next predicted full-year profits to stay within its profit guidance in October of £810mln to £845mln, issued in October.
But it said its revised central forecast for full-year group profit was now £817mln, though this might increase or decrease by £7mln depending on trade in January.
It said £817m would represent an increase of 4.4% on last year.
The group said it was budgeting for Next Total full-price sales growth in the year to January 2017 of between 1% and 6%.
It forecast profits to rise in line with sales.