Next sales offer hope for the high street as winter looms
NEXT offered a ray of hope for the high street today when it said sales are up on a year ago as shoppers stocked up on warm clothes in readiness for winter.
City analysts still warn that there is trouble to come even for Next, generally regarded as the best run business in UK retail.
Sales in the thirteen weeks to October 29 were up 0.4% on a year ago and the company held its full year profit forecast at £840 million. There was one very strong week of sales in September when the weather was bad.
The shares rose 97p, 2%, to 5060p.
Rosalind Hunter at global consultancy Simon-Kucher & Partners said: “The stabilising sterling should help deal with costs, and a combination of physical and online stores could place the retailer in a better position than some of its solely online competitors to face the challenges ahead.”
Richard Hunter, Head of Markets at interactive investor, said: “The wider concerns of a cost of living crisis, an inflationary environment which is being tackled by rising interest rates and a more cost-conscious consumer, are all headwinds to be faced.”
Recent surveys have showed that consumer confidence is near record lows as households responded to high inflation and concern over chaos in government
