Share Prices & Company Research

Press Release

23 March 2018

Next warns of “challenging” 2018 during tough times for the high street

Fashion retailer Next has warned 2018 would be “another challenging year” as it reported an 8.1% fall in annual pre-tax profits during 2017.
 
Pre-tax profit for the year was £726.1m, which the high street chain said was in line with guidance. Total group sales in its high street stores were down 7%, however, online sales increased just over 11%.
 
Shares were up 2.7% during early trading, despite having fallen since the beginning of the week.
 
Roy Kaitcer, investment manager, said: “Next report that profits were affected by inflation and a squeeze on real incomes and are looking for modest growth this year.
 
“There has been a relief rally in the share price this morning as results were slightly better than expected, but trading conditions remain challenging, as does the retail sector generally.  Things are pretty tough on the high street, which was also demonstrated by Mothercare and Carpetright’s statements earlier this week, and will remain that way for some time. The companies which are defying the high street gloom would appear to be pure online retailers such as ASOS and boohoo.com.”
 
Past performance and forecasts are not a reliable indicator of future results or performance. Our view does not constitute a recommendation to buy or sell the shares of Next.
 
Next warns of “challenging” 2018 during tough times for the high street
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