Next warns of tough year ahead

CLOTHES retailer Next has warned that sales and profit growth in the next year would be modest, citing concerns over the eurozone debt crisis, a credit squeeze and rising unemployment.

Shares in Next fell nearly 4% yesterday after the company said it would meet profit forecasts for the year to the end of January — guiding to a figure £7 million (€8.2m) either side of £565m — but expressed concern about the outlook for the following year.

“Our internal budgets for the year ahead show modest growth in overall Next brand sales with profit before tax only slightly up on this year,” the company said.