Fashion group Next has cut its full-year profit forecasts on the back of slower-than-expected sales at Christmas.

The forecast from the company, which sells mid-price fashion and homewares, comes despite firm sales growth over the year.

Same-store sales between August and the end of December rose 2.9 per cent, with total retail sales up 12.1 per cent.

But the company, which owns 350 stores across the UK, has cut its target for full-year pre-tax profits by £5 million to a range of between £415 million and £425 million.

Chief executive officer Simon Wolfson said: "Clearance rates in our end-of-season sale have been below our expectations."