Next in the cold as it says heatwave sales won’t last

The City punished Next on Wednesday as the High Street bellwether struck a cautious tone and admitted that a boost it got from the heatwave won’t last.

Thanks to the “prolonged” hot weather the fashion retailer has sold more dresses, T-shirts and sandals.

But it warned that “this over-achievement” was temporary and it was “almost certain that some of these sales have been pulled forward from August”.

“Given the boost to the fashion trade from the hot weather, expectations were quite healthy for [the] second quarter, but they have not exactly smashed things out of the park,” said retail analyst Nick Bubb.

The shares promptly fell 5.9%, or 350p, to 5586p.

Full-price sales grew 4.5% for the half year to July 28 and 2.8% in the second quarter. Despite this, profits and revenue forecasts are expected to stay the same for the year, with profit before tax at £717 million and full-price sales growth of 2.2%.

Next also got a boost from shifting other brands, including Barbour, Whistles and Under Armour, online and via its Label catalogue, separate from its main catalogue.

The company has been ramping up its efforts to grow this part of the business as rivals Debenhams and House of Fraser struggle to stop shoppers from going elsewhere.

Chief executive Lord (Simon) Wolfson said: “If our customers want those brands they’ll find them somewhere, so we may as well fulfil them and make sure that we’re giving our customers what they want.

“It’s been growing for the last seven years and… is growing very rapidly.” Online sales were up 15.5%, while sales in its stores declined by 5.3%.

Wolfson added 30% of its online orders are delivered through its bricks-and-mortar shops.

He is renegotiating leases on its 500-plus shops in Britain.