What’s next for the retail giant?
Shares in retailer Next have fallen 9 per cent as it reported a decline in sales. The company also warned of a “challenging” year ahead.
Fall price sales fell by 0.4 per cent in the 54 days leading up to the 24 December, annual profits are set to be at the low end of expectations.
The firm forecast its full-year profits at £792m, this is compared to the previous guidance of £785m-£825m.
Next also said its sales could be hit in 2017 as rising inflation strikes earnings growth and consumer spending.
The company said the pricing of clothing could rise “by no more than five per cent” following the drastic fall in the pound last year.
Next is already predicting a fall in its profits for next year, they are expecting to make between £680m and £780m.
Senior market analyst at ETX Capital, Nick Wilson, believes Next has other problems it needs to tackle, he said: “The simple problem is that Next is underperforming the market,”
“UK retail sales have held up in the months following the Brexit vote but Next has suffered. It’s been suffering for a while and needs a turnaround plan.”
“The brand is struggling for relevancy and risks going the way of Marks & Spencer on the clothing front, appealing to an ever-narrower customer base.”