Next shares rise on outlook

Tuesday, 06 January 2009 12:01

Next has reassured investors trading is on track to meet full-year profit forecasts, sending shares up almost seven per cent in early trading.

City profit forecasts are currently in the range of £415 million to £435 million for the year to January 2009, a decline of between five and ten per cent from last year.

However, like-for-like sales in the 347 stores were down seven per cent, the bottom of its guidance range.

Unlike its rivals Marks & Spencers and Debenhams, Next did offer heavy discounts before Christmas, which may have damaged sales but protected margins.

The retailer remained cautious in its outlook for 2009, however.

"As we mentioned in November, 2009 looks set to be another challenging year.

"We are again budgeting very conservatively, with negative like for like sales for the full year, and we believe the first half will be particularly difficult," Next said in a statement.

Debenhams also reported a fall in like-for-like sales in the run-up to Christmas, recording a drop of 3.3 per cent.

However, profit for the 18 weeks from October 21st was up, due in part to tight cost-control and an increase in sales of designer clothes, the retailer added.

Shares in Debenhams rose sharply on the figures, gaining 28.95 per cent in mid-morning trading on the London Stock Exchange.

• Tags:
• news
,
• share prices