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5 January 2011
Last updated at 02:42 ET
UK clothes retailer Next has said the December snow cost it £22m in Christmas sales, but profits remain on target.
Online sales enjoyed an initial boost from Christmas shoppers stranded at home, but then slumped amid fears the snow would delay deliveries.
Overall, store sales for the five months up to Christmas Eve were down 3.1% versus last year, the firm said, while online sales were up 8.7%.
That left the firm on course for annual profits of £540m-£555m.
This is in line with earlier guidance, and represents a 7%-10% rise on last year, said the company in its trading statement.
Earnings per share are expected to be up a more impressive 15%-18% thanks to earlier share buybacks by the retailer.
In the five months to 24 December, like-for-like sales - which cover sales at stores open for at least a year - were down 6.1%.
Next also repeated an earlier warning that its prices are likely to rise by about 8% this year, due to the VAT rise, as well as "higher input prices" - notably the rising price of cotton.
It said it was too early to predict how raising its prices would affect demand, although the company already noted that discounting by its competitors had undercut its Christmas sales.
The retailer also expressed concern over the impact of government austerity on consumer spending, saying the outlook for the year is uncertain.
Online Business Consulting | Internet Business Consulting
Online sales enjoyed an initial boost from Christmas shoppers stranded at home, but then slumped amid fears the snow would delay deliveries.
Overall, store sales for the five months up to Christmas Eve were down 3.1% versus last year, the firm said, while online sales were up 8.7%.
That left the firm on course for annual profits of £540m-£555m.
This is in line with earlier guidance, and represents a 7%-10% rise on last year, said the company in its trading statement.
Earnings per share are expected to be up a more impressive 15%-18% thanks to earlier share buybacks by the retailer.
In the five months to 24 December, like-for-like sales - which cover sales at stores open for at least a year - were down 6.1%.
Next also repeated an earlier warning that its prices are likely to rise by about 8% this year, due to the VAT rise, as well as "higher input prices" - notably the rising price of cotton.
It said it was too early to predict how raising its prices would affect demand, although the company already noted that discounting by its competitors had undercut its Christmas sales.
The retailer also expressed concern over the impact of government austerity on consumer spending, saying the outlook for the year is uncertain.
Online Business Consulting | Internet Business Consulting