Next will provide a glimpse into the state of the High Street and mood of shoppers next week.
All eyes will be on the FTSE 100 fashion retailer – and the views of its boss Simon Wolfson – when it publishes annual results on Wednesday.
Investors will be interested to see if shoppers are still splashing out on clothes in the face of higher prices – and how much further Wolfson believes prices will have to rise.
Earlier this year, the company hiked its full-year profit forecasts after seeing better than expected sales over the Christmas shopping period.
Analysts are expecting Next to report a 4.5 per cent increase in sales to £5.1billion for 2022.
It is hoped profits will rise by a similar amount to £860m.
Given the turmoil in the financial markets, investors could certainly do with something to cheer, and Next shares are up around 15 per cent this year, though they remain some 20 per cent down since late 2021.
Aarin Chiekrie, equity analyst at investment platform Hargreaves Lansdown, said: ‘Next’s last trading update gave the group plenty to cheer about.
‘Sales over the Christmas period were 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.
‘There is a question mark over whether consumers can stomach these hikes. If not, we could see sales drop.
‘The group’s position as a middle-of-the-road retailer means its customers could slide down the value chain rather than fork over a little more.’
This post first appeared on Dailymail.co.uk
