Economy

Next sales rise but shares hit by jitters over Christmas

Next sales rise but shares hit by jitters over Christmas”

Meanwhile full-price sales had a 1.3 per cent uptick, a significant improvement on the three per cent decline that was recorded in the first quarter.

"However, as we highlighted in September, the third quarter past year was very weak, whereas the Christmas trading period was only down -0.4 per cent".

Next saw full price sales up +1.3 YOY in its third quarter (to 29th October 2017), leaving year-to-date full price sales down -0.3%.

British clothing retailer Next said on Wednesday its sales improved in the latest quarter, though trading was "extremely volatile" and highly dependent on the weather.

It added: "In August and September, sales were significantly up on a year ago, as cooler temperatures improved sales of warmer weight stock".

Sales have risen at Next in the third quarter but trading remains "extremely volatile" and sales could fall again as it heads into the Christmas period.

Next's shares fell by more than 7% in early trading after the announcement.

Retail analyst Nick Bubb described the slide in Next's high street sales as "sickening".

"This is a worry, although there does seem to an improving trend in sales growth throughout the year".

George Salmon, equity analyst at Hargreaves Lansdown said weak sales growth over the last three months took the City by surprise.

Next reaffirmed its profit guidance for the year, saying it expects to deliver pre-tax profits between £692m-£742m, compared with its previous forecast of £687m-£747m.

A 13.2% jump in sales at its directory arm helped push overall sales higher.

"A particularly weak October means the group enters the all-important Christmas period with less momentum than it would have liked". "Shareholders in Marks & Spencer, for example, might now be a bit more nervous ahead of next week's half-year numbers".

Since then, it has been overhauling its product ranges and upped its earnings outlook in September as it said its prospects were "less challenging" than previously expected.



Like this

loading...
loading...

Latest


01 November 2017
Dak Prescott, Cowboys Beat Kirk Cousins, Redskins Behind Ezekiel Elliott's 2 TDs
Elliott dominated in the ground game, even having multiple positive gains - including a 26-yard touchdown - nullified by penalty. Washington capitalized on an uncharacteristic Elliott turnover to score first on a 38-yard field goal, just 1:39 in the game.

01 November 2017
21 killed in air strike on hotel in Yemen
The stalemated war has killed more than 10,000 civilians and pushed the Arab world's poorest country to the brink of starvation . The agency said 9 people were seriously injured in the attack, without giving further details.

01 November 2017
Driver shouted "Allahu Akbar"
The box truck then collided with a Home Deport rental truck, and the box truck driver got out with what appeared to be a firearm. He said he then heard seven to eight shots and then police pointing a gun at a man kneeling on the pavement.

01 November 2017
Brokers Set Expectations for Marsh & McLennan Companies, Inc.'s FY2017 Earnings (MMC)
The company reported $0.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.68 by $0.01. On October 16 Barclays held the company rating at "Overweight" and raised the price expectation from $77.00 to $93.00.

01 November 2017
Shahid Kapoor & Mira Rajput's exclusive photo-shoot for Hello Magazine!
Bollywood star Shahid Kapoor and wife Mira Rajput look royally in love as they debut together on a magazine cover. Shahid, who started his career with Ishq Vishk in 2003 shared the picture on Instagram and wrote, "Hello".

01 November 2017
Liberia's Supreme Court stays presidential run-off over fraud allegations
But the Liberty Party's Charles Brumskine, who came third in the first round, has challenged the result. Boakai of the ruling Unity party saying, he feels the pains his rival.

01 November 2017
Akshay Kumar's first look in '2.0' revealed!
The film is directed by S Shankar, co-written by B Jeyamohan, and produced by Subaskaran Allirajah, founder of Lyca Productions. The movie also stars Amy Jackson and is the sequel to 2010 blockbuster Tamil film Enthiran starring Rajinikanth.

01 November 2017
CA Bill Tackles Costs for Utility-Sparked Fires
CAL FIRE encourages all Californians to be prepared and make sure that they take actions to prevent sparking a new wildfire. The bill would bar public utilities from passing on to consumers any costs associated with their own negligence.

01 November 2017
Apple rolls out iOS 11.1 update, brings new emojis, bug fixes
It fixes an issue for some users where alternative keys were not displaying while using VoiceOver with Touch Typing. Now click on the Download and Install button at the bottom and enter your device's passcode to proceed.

01 November 2017
Thunder coast past Bucks in battle of MVP favourites
Phoenix seemed out of it after Ronda Hollis-Jefferson's basket gave Brooklyn a 106-98 lead with 6:35 left in the fourth. Warren and James combined on a 7-0 run that closed the lead to 106-101 with 6:15, forcing the Nets to call a timeout.