Next has released its annual financial results, reporting the first drop in annual profits for eight years and confirming predictions of a challenging period for the retailer. Pre-tax profits dropped by 3.8% to £790.2 million for the year to January, marking the first drop since 2008.
Prices at the retailer were confirmed to have risen by 4% to account for the rising cost pressures brought on by the Brexit vote.
The high street chain is considered a bellwether for the fashion industry and raised alarms in January after it stated it was preparing for “tougher times” following a disappointing fourth quarter.
Next’s chief executive Lord Wolfson has warned of another difficult year for retailers ahead.
"The year ahead looks set to be another tough year for Next,” he said.
"We remain clear on our priorities going forward. We will continue to focus on improving the company's product, marketing, services, stores and cost control."
