Today Next PLC (LON:NXT) released a trading update to investors noting a “disappointing” 0.4% increase in sales during the 60 day period up to Christmas (Monday 26 October to Thursday 24 December).

The company said Next did not discount stock at any time before our End of Season Sale, so gross margins were maintained however stock for the End of Season Sale was -7% lower than last year and clearance rates are broadly in line with last year.

Next believes that the disappointing performance in the fourth quarter was mainly due to the unusually warm weather during November and December in the UK. Group profit before tax £817m

Full year estimates for 2015 to January 2016 are penciled in at +4.4% profit before tax growth to £817m.

The update wasn’t all bad for investors, the board advised that it expects the Company to continue to be strongly cash generative, “with surplus cash from operations in the order of £370m”.

Following the declaration of Next’s last special dividend the company said it has not bought any shares for cancellation hence the board has decided to declare a further special dividend of 60p per share, which represents approximately one quarter of the surplus cash expected to be generated in the year ending January 2017.

The dividend will be paid on 1st February 2016 to shareholders on the register at 15 January, with an ex-dividend date of 14 January.