Next says profit will be hit if warm weather continues

LONDON, United Kingdom - Next, Britain's second biggest clothing retailer, will have to lower its full-year profit forecast if the country's unusually warm autumn weather continues, deterring shoppers from buying winter clothing, it said on Tuesday.

The group, which trades from over 500 stores in Britain and Ireland, about 200 stores overseas, and through its Directory internet and catalogue business, said third quarter sales to date were up 6 percent - lower than its previous forecast of up 10 percent.

"Cooler weather in August resulted in several very strong weeks. However, warmer weather in the more important month of September has had the reverse effect," it said.

John Lewis, Britain's biggest department stores group, was the first major UK retailer to say shoppers were delaying purchases of winter clothing because of unseasonably warm weather, when it reported a weekly sales dip on Sept. 19.

Shares in Marks & Spencer, Britain's No. 1 clothing retailer, and Debenhams, the No. 2 department store chain, are likely to be impacted on a read across from Next's statement.

Next said that at present its profit forecast for the full 2014-15 year remains within its previous guidance range of 775-815 million pounds ($1.26-$1.32 billion), given on July 29 and reiterated on Sept. 11.

"Our experience suggests that some lost sales are regained when the weather turns. However, if this unusually warm weather continues for the full duration of October then we are likely to lower our full year profit guidance range," it said.

Shares in Next, up 36 percent over the last year, closed Monday at 6,865 pence, valuing the business at 10.5 billion pounds. (1 US dollar = 0.6153 British pound)