In a tough trading environment, Next posts modest results

Next this week posted its third quarter results, which saw flat sales in August and September of 0.2 percent and 1 percent respectively, but a pickup in October boosted full price sales 5 percent.

Steve Miley, senior market analyst at www.asktraders.com, told FashionUnited: “Next third quarter full price sales were slightly ahead of guidance at 2 percent. However, the retailer maintained its guidance for the financial year with full price sales to grow 3.6 percent. Sales at physical stores fell 6.3 percent while online sales rose 9.7 percent.

Whilst these are a solid set of results given the tough trading environment, investors were obviously holding out for more from the retailer. The share price dropped over 2 percent in early trade.

Store sales falling 6.3 percent is a cause for concern, this is a significant decline and one that investors are finding hard to digest. That said, the online figures prove that Next is evolving well, with a sophisticated online offering which will support the firm amid challenging trading conditions on the high street. Despite investors’ disappointment, Next is adapting to industry change and could still retain its crown as a retailer darling.”