Next expected to issue glum trading update with Christmas sales falling flat

Clothing retailer Next will be the first big high street store to post its trading update following the festive season - however the outlook for the brand isn't expected to be rosy.

Analysis has forecast the chain will downgrade its full-year profit expectations, to show a 12.7% fall in store sales in the run-up to Christmas.

Current guidance for annual pre-tax profit stands at £727m but brokers Jefferies is pencilling in a figure of £705m, down from last year's £726m.

The only saving grace for Next could be its online trading arm, which is expected to see a record sales rise of 10%.

Jefferies' James Grzinic explained: 'The combination of mild weather and Brexit-induced UK consumer weakness is bound to have impacted Next's Christmas performance.'

The update comes at a difficult time for the retail sector, with recent data from Springboard suggesting footfall on Boxing Day plummeted 3.1%.

Even online has not been spared, with Asos issuing a pre-Christmas profit warning following a dire November.