- Don-Alvin Adegeest |
Next results are down nearly one-third, but better than originally expected.
Nigel Frith, a senior market analyst at www.asktraders.com told FashionUnited: “Next reported a 28 percent decline in full price second-quarter sales. Online sales have proved to be a bright spot with warehouse capacity returning to normal levels and online sales rising 9 percent compared to the same period last year.
Next’s superior online offering in addition to consumers’ willingness to spend as stores reopened has helped Next report better than expected full-price sales numbers, cementing its position as the darling of the high street even in challenging times.
Kidswear, sportswear and home in addition to some adult casual clothing performed much better than expected as consumers spend more time in an informal setting at home. Next is one of the few retailers that have successfully bridged the gap between high street and online and this is proving to be its forte.
The upbeat results tie in with improving picture in retail that has been coming through in recent weeks after retail sales surged 13.9 percent in June and as the BRC reported that retailers were discounting less in July.
Questions remain over the outlook as the government starts to withdraw its support from the jobs market over the coming months, unemployment is expected to rise, and this could well drag on sales going forward. However, these concerns are for a different day. For now, investors are focusing on the upside surprise and Next trades over 9 percent higher in early trade”.