(MENAFN- ProactiveInvestors - UK) Shares in Next (LON:NXT) fell 3% in early trade as it sounded the earnings alarm with the clothes chain blaming the unseasonably warm autumn for its woes.
The retailer said third quarter sales rose 5.4%, which fell well short of the targeted 10% growth.
As a result it has cut its pre-tax profit forecasts, which come down to £750-£790mln, compared with a range of £775-£815mln previously.
Next had prepared the market for the downgrade in a previous announcement, though it has an enviable track record of meeting earnings guidance.
This morning it told investors: "Whilst a cool August meant that the season started well, this was more than offset by much weaker sales in September and October.
"Given the volatility of current trading and the very strong fourth quarter performance last year, we have moderated our expectations for the fourth quarter this year."
The writing was on the wall when the latest British Retail Consortium figures pointed to a 0.8% fall in sales in September.
It's a performance expected to be repeated this month as temperatures remain above the seasonal norm, leaving shops with a surplus of woolly jumpers and coats.
Next's performance is also likely to have a knock-on impact on the share price of high street stalwarts such as Marks & Spencer.
At 8.10am, Next shares were changing hands for £62.35 for a fall of 3%.
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