BRITAIN’S Indian summer will knock £25 million off profits at retailer Next after the sustained period of mild weather saw its sales performance melt away.

Sales grew by 5.4 per cent in the third quarter to October 25, compared to original expectations of ten per cent, following the mild autumn’s temperatures of up to 20C hitting sales of jumpers and coats.

Next said it now expected full-year pre-tax profits to rise 11 per cent to £770 million, down from £795 million previously expected.

Quarterly sales in stores grew by just 2.4 per cent but the overall figure was boosted by the performance of online and catalogue sales through Next Directory, up 9.6 per cent.

Full-year total sales are now expected to be between six per cent and eight per cent higher than last year, although Next aimed for a seven to ten per cent rise.