Next boss upbeat about profits despite taking warm weather hit

But chief executive Lord Wolfson sounded a brighter note about the economy, saying relatively low inflation was helping shoppers.

The FTSE 100 company said it expected to rack up annual profits of about £770million rather than the £795million that it had forecast previously.

It has also reduced its sales ­prediction for the three months including the run-up to Christmas to about 1 per cent, ­versus its original forecast of 4 per cent.

The group warned last month that sales were taking a hit from fewer shoppers buying heavy clothing.

In an update it said with a cool August the autumn season had started well but much weaker sales in Sept­ember and so far this month had more than offset that.

Third quarter sales rose 5.4 per cent compared with the group’s original prediction of 10 per cent.

Wolfson said “I think even in the worst-case scenario we are not looking at an unacceptable ­performance."

He expected the warm weather to continue in November, but added: “The drop in oil and food prices is a good thing so consumers will go into next year feeling more comfortable than they did this year.”

Wolfson said people were increasingly buying clothes only when they needed them, thanks to the ease of internet shopping.

“People’s access to clothing is much greater than it was 10 years ago so they can leave buying to the last minute,” he added.

Broker Peel Hunt kept its hold stance on Next, saying it considered any material weakness in the firm as a buying opportunity. “Next remains one of the few ‘must own’ stocks in the sector,” the broker’s John ­Stevenson said.

James McGregor, director of retail consultants Retail Remedy, added: “Even when weather or trading conditions are against it, Next has a knack for outperforming its peers. It is an extremely resilient retailer with a forensic knowledge of its core customers and this will help it through the current volatility in market conditions.” Shares fell 20p to 6415p.