UK Retailer Next announced that its sales have dropped in the run-up to Christmas Eve, in contrast with companies predictions that they would go up.
Next said in announcement that full-price sales plunged by 0.4% in the 54 days to 24 December in contrast with the year before.
The company also revealed that its profits for the full-year would be at the bottom end of predictions.
The company predicts forecast full-year profits would be £792m, in contrast with previous outlook of £785m-£825m. In a statement the firm said that the coming year would be “challenging”.
Meanwhile Next added that company’s sales in 2017 could be affected as growing increases earnings growth and puts a jam on shopper spending. It also said that prices of apparel could surge “by no more than 5%” following the drop in the value of the currency in 2016.
Consequently, the retailer said it was planning for full-price sales growth in the year to January 2018 within the range of a fall of 4.5% and an increase of 1.5%. If in case it came in at the mid-point of a drop of 1.5%, that would be “marginally worse” than the recent year’s performance, it added.
Furthermore Next is already forecasting a drop in profits for next year, quoting it expects to generate between £680m and £780m.