British fashion retailer Next today reported year profits in line with its forecasts, but said like-for-like sales had slipped in the last seven weeks.
Next, which sells mid-price fashion and homewares through its high-street stores and its Directory catalogue business, said group profit before tax was up 18% to £423m sterling for the year ended January 2005.
But it said like-for-like sales in the past seven weeks had slipped at its stores, blaming cooling UK consumer demand.
The remarks echo comments from other mid-market retailers. Department store chain House of Fraser last week said sales had fallen during the year so far and blamed a slowdown in the housing market for poor trade in homewares.
Retail entrepreneur Philip Green was also downbeat about the UK's mid-priced retail sector earlier this month, saying competition had heightened leading to a tougher trading environment.
Next said like for like sales in the 279 stores that had been trading for at least one year and had not been affected by the opening of new space were down 0.9% in the seven weeks to March 20. Same-store sales were down 3.5% during the period in the 333 stores which had been impacted by the opening of new space, the firm said.
On a more positive note, Next Directory sales were up 10.4% during the period.
The store chain trimmed its full-year profit forecast in January by £5m to a range of £415-425m, blaming a slower than expected post-Christmas stock clearance. It said at the time 2005 would be hit by restrained spending growth.
