British high-street retailer Next has warned over soaring costs from the Brexit-hit pound as it posted another fall in sales.
The group said its buying costs could rise by up to 5% in the year to the end of January 2018 after the value of the pound has been sent plunging since the EU referendum.
Next posted another steep fall in sales - down 3.3% for its retail shops in the second quarter to the end of July - while its Next Directory arm recorded a 5.7% rise.
But a better-than-expected end-of-season sale performance helped limit the fall in total store sales, including markdowns, to 0.7%.
The group said there was "no clear evidence" of a hit to consumer confidence since the Brexit vote, although it warned that trading conditions will remain tough for the rest of the year.
It is expecting sales falls to worsen in a "particularly challenging" third quarter as it also comes up against tough comparisons from a year earlier.
