The fashion company said it is bracing for "tougher times" in 2017 as it warned profits for the year to January 2017 were expected to fall by around 3.6 per cent, and sales and profits would remain under pressure in a "challenging" year ahead.
The high street stalwart said sales in the 54 days to December 24 fell 0.4 per cent, defying hopes of a fourth quarter turnaround, while it posted a seven per cent plunge in end-of-season clearance sales.
The chain expects full-price sales in the current year to fall by around one per cent, but added that profits could tumble by up to 14 per cent in a worst case scenario for the year to January 2018.
Next revealed it suffered a 3.5 per cent fall in full-price sales across its high street stores in the 54 days to Christmas Eve, but saw a better performance across its Directory catalogue arm, with sales up 5.1 per cent - though this was not enough to offset the fall across stores.
The group also repeated warnings over cost pressures from a weaker pound, which could mean prices may rise by up to five per cent.
Richard Lim, chief executive of consultancy Retail Economics, branded the Next update "miserable".
He added: "These latest figures from Next confirm that underlying conditions on the high street remain desperate for clothing and footwear retailers."
Next also lashed out at the Government over its handling of the UK's exit from the EU and said there was "little visibility of the approach the UK Government will be taking to Brexit".
The group is headed up by pro-Brexit Lord Wolfson.
The group had been hoping for a fourth quarter rise in sales after a difficult 2016, but today said the end-of-year blow meant profits were expected to come in at £792 million for the 12 months to January 2017, depending on January trade, which would be a 3.6 per cent fall on a year earlier.
The group added: "The year ahead looks set to be another challenging year; therefore we are preparing the company for tougher times."