High street retailer Next (LON:NXT) is trading down over 5 percent this morning, after a trading statement blamed warm weather and poor stock availability for disappointing sales.
Retail sales fell 0.5pc in the 60 days before Christmas, but sales for the full year to January 2 came in at 3.7 percent higher than last year; not as high as the Group’s earlier guidance of between 4 and 6 percent.
However, due to good control of margins and low excess stock, the company confirmed that it expects to make a 2016-16 pretax profit of £817 million – still within the guidance of £810-845 million issued in October.
Alongside the unusually warm weather in November and December, which drove down the traditional sales in winter clothing, the company admitted that their lead in the online marketplace was diminishing as other retailers improve their service.
Next are currently trading down 5.29 percent, at 6,8100 pence per share. The company has a 52 week range of between 6715 and 8175.
05/01/2016
