Next says 2016 clothing sales could fall by 2.5 pct

LONDON, Aug 3 (Reuters) - Next (Other OTC: NXGH - news) , one of Britain's biggest clothing retailers, on Wednesday said that 2016 sales could fall by 2.5 percent, an improvement on previous guidance, but said trading remained volatile, reflecting weak demand for clothing.

Next said that full-price sales would this year be in the range of 2.5 percent lower to 2.5 percent higher, narrowing a previous range of anything from 3.5 percent lower and 3.5 percent higher.

The company said that it was too early to tell what the impact of Britain's vote to leave the EU in June was having on consumer demand in the country, but warned that its cost prices would rise by about 5 percent from next year due to the devaluation of the pound since the vote.

(Reporting by Sarah Young, editing by Louise Heavens)