Insider Media Limited

High street retailer Next told the Stock Exchange of a "disappointing" Christmas period this morning.

The Enderby-based company said that it may have been hit by competitors' discounting their products in the run-up to the festive season.

Next unveiled the results in a trading statement for 1 August to 24 December. The company said that "slightly disappointing" sales from its retail stores were compensated by a strong performance in its directory division.

Brand sales were up 3.1 per cent, in line with the full-year guidance range given in November of 2.5 per cent to 4 per cent.

Next said that "a number of factors" had subdued sales in the last quarter.

"We did not discount our products in the run up to Christmas and maintained operating margins. It is hard to judge to what extent warm winter weather and higher levels of competitor discounting masked the deeper, longer lasting, economic effects," the company said.

It cited difficulties including the Eurozone crisis, falling UK employment and the continued squeeze on businesses' budgets as other negatives working against a sales rise.

Next was given a boost at its end of season sale, at which stock was up 10 per cent on the previous year.

"Despite a good final week before Christmas, November and December sales were disappointing given that snow adversely impacted sales in 2010," the company added.

"We continue to expect full year profit before tax on continuing business to be in line with our previous guidance. We are now narrowing our guidance range to £7m either side of £565m."