British clothes retailer Next reported full year profits in line with its forecasts today, but said like-for-like sales had slipped in the last seven weeks.
Next, which sells mid-price fashion and homewares through its high-street stores and its Directory catalogue business, said like-for-like sales in the past seven weeks had slipped at its stores mainly due to cooling UK consumer demand.
However, the firm said it had been expecting the slowdown and shoppers' appetite had not drastically fallen.
"We're not overly worried about this," Chief Executive Mr Simon Wolfson told Reuters in a telephone interview. "Everyone always knew that at some point there was going to be an easing in consumer demand ... it's not like it's fallen off a cliff."
Next shares fell 1.7 percent to 1,554 pence in early trade. The firm said it did not expect any significant economic improvement for at least six months.
One analyst said this was worrying, but expressed confidence in Next's management team. British consumers are tightening their purse strings in an election year amid concerns about falling house prices and rising interest rates.