Sales over the festive period at Next were down -0.4% on last year, a result which bosses admitted fell short of expectations.

Although the sales for November and December were up on Next's third quarter, the retailer had been hoping for a significant improvement on last year's “comparatively poor” numbers rather than further decline.

Total sales for the year-to-date were up 0.4% on last year, with full price sales down -1.1%. While stock was “well controlled” and down -3% on last year, sales in the end-of-season sale were down -7%, with the cost of lower clearance rates in the order of £3m.

Looking ahead, the group has warned of “another challenging year,” saying that the declining sales in quarter four means “we expect the cyclical slow-down in spending on clothing and footwear to continue into next year.”

The retailer has also warned of the likelihood of price increases due to the devaluation of the pound, with like-for-like garments expected to rise by maximum 5%. This is expected to decrease sales revenue by around 0.5%.