Tough start for Next, H&M

Two of Europe’s biggest fashion retailers, Next and Hennes & Mauritz, have endured a tough start to the year, hit by a combination of unhelpful weather and economic headwinds.

Retailers across Europe are battling a prolonged squeeze in consumer incomes as governments try to reduce their deficits. Freezing wet weather has also discouraged shoppers.

In Britain, two thirds of GDP is generated by consumer spending, so a poor first quarter would increase the chances of the country dipping into a third recession in four years.