STOCK OF THE WEEK: Next set for full year results
SHARE OF THE WEEK: Next set to give an insight into the state of the High Street and shoppers’ mood
Next will provide an insight into the state of the high street and shopper sentiment next week.
All eyes will be on the FTSE 100 fashion retailer – and the views of its boss Simon Wolfson – when it releases full-year results on Wednesday.
Investors will be curious to see if shoppers are still spending on clothes in the face of higher prices — and how far Wolfson thinks prices have yet to go.
Earlier this year, the company raised its full-year earnings guidance after posting better-than-expected sales during the holiday shopping season.
Analysts expect Next to report a 4.5 per cent increase in sales to £5.1 billion in 2022.
It is hoped profits will increase by a similar amount to £860m.
Investors could certainly use a cheer given the financial market turmoil, and shares of Next are up around 15 percent this year, despite still being down around 20 percent since the end of 2021.
Aarin Chiekrie, equity analyst at investment platform Hargreaves Lansdown, said: “Next’s latest trading update gave the group a lot to cheer about.
“Sales over the holiday season have been better than expected. While these numbers are commendable given the challenging environment for retailers, it’s important not to lose sight of the challenges ahead. To cope with rising costs, Next is raising prices.
“It is questionable whether consumers will be able to cope with these price increases. If not, we could see a drop in sales.
“The group’s position as a mid-tier retailer means its customers can move down the value chain rather than split a little further.”
https://www.dailymail.co.uk/money/investing/article-11899871/SHARE-WEEK-set-annual-results.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 STOCK OF THE WEEK: Next set for full year results