The share price of Next is up this morning (January 3rd) after the retailer announced strong sales for the festive period in the UK.
John Lewis and House of Fraser released their sales data earlier in the week, with Next revealing it saw sales rise by almost 12 per cent between the start of November and Christmas Eve.
Next noted that this is "significantly" beyond its own expectations for the Christmas period and raised its forecast for full-year profits as a result, increasing its predictions to between £684 million and £700 million.
While Christmas proved to have a positive impact on sales for House of Fraser, Next and John Lewis, the story was not quite the same for Debenhams, which was forced to lower its profits forecast after sales did not reach the expected levels.
Sales at Next stores rose by 7.7 per cent, but it was online where the retailer made major gains in the 2013 festive period compared to the year before. The company announced that it recorded a 21 per cent gain between November 1st and December 24th.
Next said: "The problem of little or no growth in real earnings looks set to persist for some time, and we cannot see any reason to expect a significant increase in total consumer spending in the year ahead. We are also wary that any return to significant economic growth is likely to result in rising interest rates which, in turn, is likely to moderate spending of those with mortgages."
The share price of Next rose strongly this morning on the back of the rise in its sales figures and the firm increasing its full-year profit forecast. In the early stages of trading on the London Stock Exchange, stocks in the company were more than eight per cent higher and still rising.
By 08:09 GMT, the share price of Next was around nine per cent up on the start of the day, with stocks selling for 5,940.00, up 490.00 for the session.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.