Next warns of 'volatile' trading head of key Christmas season

The group notched up a 1.3 per cent sales rise in the three months to October 29 but saw a 7.7 per cent plunge across its high-street shops and said trading was “highly dependent” on the weather. A 13.2 per cent jump in sales at its directory arm helped to push overall sales higher. Including discounts, total sales rose by 0.8 per cent in the quarter.

Chief executive Lord Wolfson told reporters that cautious consumers were buying only “as and when they need”.

The group said that this was making it hard to forecast sales ahead of key Christmas trading.

In the City, UBS analyst Andrew Hughes is remaining steady on Next, keeping the bank’s “buy” rating and price target of £50 a share.

He said: “We retain our pre-tax profit forecast of £725 million, although the biggest swing factor remains the weather.”

The warm October weather meant that winter clothing is still on the shelves. A possible interest rate rise today by the Bank of England would also deter shoppers from splashing the cash.