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PA

Subsequent has warned that this yr can be “difficult” because it reported a fall in gross sales within the run-up to Christmas.

The retailer stated full-price gross sales fell by zero.four% within the 54 days to 24 December, with annual income now set to be on the low finish of expectations.

The agency forecast full-year income can be £792m, in contrast with earlier steering of £785m-£825m.

Subsequent stated gross sales in 2017 might be hit as rising inflation erodes earnings development and squeezes shopper spending.

Subsequent shares fell by 12% firstly of buying and selling in London.

“The yr forward appears set to be one other difficult yr; subsequently we’re making ready the corporate for harder occasions,” the corporate stated.

It stated the value of clothes might rise “by not more than 5%” following the autumn within the worth of the pound final yr. It added that this is able to “depress gross sales income by round zero.5%”.

Because of this, it stated it was budgeting for full-price gross sales development within the yr to January 2018 inside the vary of a fall of four.5% and an increase of 1.5%.

If it got here in on the mid-point of a fall of 1.5%, that will be “marginally worse” than the present yr’s efficiency, it added.

Subsequent is already predicting a fall in income for subsequent yr, saying it expects to make between £680m and £780m.

Nonetheless, the retailer stated it was “effectively positioned to climate a downturn in shopper demand”.

The figures for the 54 days to Christmas Eve revealed gross sales in shops fell by three.5%, whereas Subsequent Listing gross sales rose by 5.1%.