Fashion chain Next has downgraded its full-year profit forecast to £723 million, from the £727 million previously expected.
It said, however, full-price sales for the festive period were in line with expectations, up 1.5% between October 28 and December 29.
Next, which has 27 stores in Ireland, said high street store sales slumped 9.2% over the Christmas trading period, but this was offset by a 15.2% surge online.
It said the profit downgrade came as it sold more seasonal products, such as personalised gifts and beauty products, which make a lower profit margin than its clothing ranges.
The group also said it faced higher operational costs on its online sales.
Next also gave initial estimates for the new financial year, predicting profits will fall 1% to £715 million while full-price sales growth will ease back to 1.7%.
The group said, "In the year ahead, we are assuming a similar economic environment as that experienced in the second half of the current year.
"Within this guidance, we expect retail sales to be down 8.5% and online sales to be up 11%."
But it said this came with a "high degree of uncertainty" and does not factor in the "potential benefits of a smooth transition or the downsides of a disorderly Brexit".
