Retailer Next has warned that 2016 could be the "toughest" year since the financial crisis.
The high street giant, which is based in Enderby in Leicestershire, posted a 5% rise in underlying pre-tax profits to £821.3 million for the year to the end of January.
The group had already warned over results in January after a difficult Christmas due to unusually warm weather.
Next said it was bracing itself for a slowdown in the global economy and for profits to fall by up to 4.5% in a year that "may well be the toughest we have faced since 2008".
Reacting to the news the chief executive of Leicester-based Next is to share his bonus of £4million with 20,000 staff, giving them the equivalent of a 1.5% pay rise as a one off payment next month, Mick Rix, the GMB union's national officer for retail staff, said:
"This pay rise, while welcome, will place Next staff 18p above the national minimum wage of £6.50. This is well below a living wage of £7.65 an hour outside London and £8.80 in London, while 30,000 of the 50,000 employees will get no share of the £4 million bonus."
The chief executive of Leicester-based retailer Next has announced he's sharing a £4million bonus with thousands of the firm's staff.
Lord Wolfson said in a letter to employees that an incentive scheme he was awarded in 2011 had grown and was "more valuable than I could possibly have hoped".
He said that instead of accepting the bonus he had decided to share it among staff who have worked for the company since 2011 - around 20,000 employees.
The money will be shared out in proportion to a worker's annual salary, and will equate to a 1.5% pay rise, as a one-off bonus next month.
The retailer Next is expected overtake High Street staple Marks & Spencer when it publishes its annual profits later today.
Next, led by chief executive Lord Wolfson, increased its forecast for annual profits in January after enjoying a bumper Christmas.
Annual profits for Next were expected to range from £684m to £700m, according to Lord Wolfson, who made the prediction during the festive trading period.
M&S will release their fourth quarter figures in the first half of next month, and are forecast to make a pre-tax profit of £626m.
Shares for Leicester-based fashion and home ware retailer Next are at an all time high after the firm announced it expects to record bumper profits for the Christmas period.
Sales across its stores leapt 7.7%, while it said revenues surged by 21% in the Next Directory catalogue and online division.
Profits at the firm are forecast to overtake high street competitor Marks & Spencer for the first time in history.
Next now has a stock market value of more than £9 billion after seeing shares rise by nearly 50% in the last year, compared with £7.2 billion for its 130-year-old rival M&S.
The bonus comes after Next reported profits had risen by 9 per cent to £621.6m over the past year. Next shares have jumped by 48 per cent over the past year.
The GMB union described Lord Wolfson's decision to share his bonus "as a PR stunt"
Thousands of staff at the high street chain Next are to get a cash bonus after their boss Lord Wolfson asked for a £2.4 million shares windfall to be given to employees.
19,400 workers at the company, which is based at Enderby in Leicestershire, will receive their share of the payout in July. It's worth about one per cent of their salary.
Retailing giant Next have seen a large growth in the Next Directory sector of their business pushing their growth across the year ending in January to 3.9%.
Although this is largely in line with expectations cost control has seen the company increase its profit estimates to £618 million.
Despite the progress, Simon Wolfson, Chief Executive, warned trading conditions were likely to remain difficult this year as wage growth continues to lag behind inflation.
Next Retail's headquarters are in Enderby in Leicester.