LONDON: Britain's top share index dropped on Tuesday, with retailers falling after Next said it would have to lower its full-year profit forecast if the unusually warm weather continued.
The UK benchmark showed little reaction to data showing Britain's economy is bigger than previously estimated.
Britain's No. 2 clothing retailer fell 3.8 percent, the top blue-chip decliner in brisk trade, after saying the country's unusually summery autumn weather was deterring shoppers from buying winter clothing.
Its third-quarter sales to date were up 6 percent, lower than its previous forecast of up 10 percent. Trading volume in Next stood at more than four times its 90-day daily average, contrasting with about 1-1/2 times on the FTSE 100.
"Next does not often lower guidance. So the fact that they have said they may do so due to the warmer weather is hitting the shares, which have had a strong run, and will also hit the sector if the weather remains unseasonal," Securequity sales trader Jawaid Afsar said.
The weather warning put pressure on other retailers, with Marks & Spencer and midcap Debenhams both down 2.6 percent.
The FTSE 100 closed down 23.88 points, or 0.4 percent, at 6,622.72 points. The index, which dropped 2.8 percent last week, is down almost 2 percent so far this year.
"We continue to highlight the bearish possibility of more downside given the increase in concerns over the last week," Accendo Markets head of research Mike van Dulken said.
Investors stayed cautious following soft manufacturing data from China, the world's biggest metals consumer, and civil unrest in Hong Kong, where tens of thousands of pro-democracy demonstrators extended a blockade of streets.
On the positive side, Primark owner Associated British Foods topped the blue-chip leader board with a 4.5 percent advance after Credit Suisse lifted its rating on the stock to "outperform" from "neutral", highlighting that the discount fashion chain is now the key to the group's earnings.
Testing company Intertek firmed 2.1 percent after appointing a new chief executive to replace retiring chief executive Wolfhart Hauser.
Andre Lacroix will join from multinational car dealer Inchcape, where he has been chief executive since 2005.
Shares in midcap Inchcape fell 4 percent.
Royal Bank of Scotland also notched up good gains after saying it would release a substantial amount from provisions it had set aside to cover losses on bad loans.
RBS rose 1.9 percent after the state-backed bank said it would free up 800 million pounds ($1.3 billion) from provisions after an improvement in the economy, especially in Ireland.
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