Like-for-like sales at its retail stores fell 8.9 per cent in the 13 weeks to April 26, although Next said the sales had "picked up markedly" since then.

Despite the weather-related improvement, Next said it remained cautious about the outlook.
It told shareholders: "Financial pressures on our customers resulting from cost increases in food, fuel, mortgage repayments and taxation look set to continue."

Next said sales were expected to improve in the second quarter of the year as it comes up against comparisons with poor weather conditions last year.

In the last 11 days, Next said, the like-for-like sales drop for the year to date had reduced to a fall of 7.8 per cent. Total sales for the retail business, including the impact of store openings, are now down 3.8 per cent – compared with the fall of 5 per cent seen at the end of April.

At annual results in March, the group predicted a like-for-like sales decline of between 4 per cent and 7 per cent across its high street stores in the first half of the year. It said yesterday that the figure was likely to be towards the bottom end of that forecast, at around minus 7 per cent.

It said: "We had planned for weak demand and remain confident that we will have less stock for the end of season sale than we had at the same time last year."