Next, the UK's second-biggest clothing retailer, maintained its forecast for full-year profit after increased sales at the Directory home-shopping unit helped offset a slump in revenue at the company's stores.
Directory sales rose 8.7 per cent in the period between August 1st and December 24th the Leicester-based retailer said today in a statement.
Revenue at stores open at least a year declined 6.1 per cent, due partly to snowy weather, which Next estimates cost it £22 million in lost sales.
The heaviest early snowfalls in 17 years kept shoppers away from shopping streets last month, while fuelling growth in online sales.
Next gets more than a quarter of revenue from its Directory unit, where shoppers can order on the Web or by phone. UK consumer confidence stayed at a four-month low in December as Britons prepared for state spending cuts and tax increases.
"The outlook for 2011 is uncertain," Next said in the statement. "The impact of government cuts on consumer spending is still unclear and we have yet to fully understand the impact of rising retail selling prices on overall demand."
Pretax profit for the year ending this month will be £540 million to £555 million, Next said. Earnings per share growth will be between 15 per cent and 18 per cent.
Total sales for the Next Brand rose 0.2 per cent, excluding value-added tax through December 24th. That was "just within" the company's forecast for growth of as much as 3 per cent.
Bloomberg