Next share price plummets after torrid day for retail giant

Shares in Enderby-based retailer plunged yesterday afternoon to a four-year low after the high street giant issued a profit warning.

At one point shares were trading for just over £4 each, down 14% in one day. A late rally couldn’t mask a torrid day for the firm.

Next’s share price plummeted after the firm said that sales for the 54 days from 1 November to 24 December were down 0.4% on 2015 – a year which is described as “poor”.

Sales for the full year, excluding sales, are down 1.1%. End of season sales were down 7% on last year.

Next has revised its central profits guidance to £792m, although this may increase of decrease by £7m depending on January sales. In a worst case scenario, this could mean a profits drop of some 14%.

Martin Lane, from www.money.co.uk, said: “Next are having a really hard time of it. Last year they cited the bad weather as the cause for their problems and now it’s the performance of the pound – the problem with these excuses is other clothes retailers are doing very well so they can’t keep blaming external factors.

“Next have their work cut out if they are going to survive and you could argue they are trying to be too many things to too many people. They’ve tried to appeal to an audience too turned off to tune in and in doing so have lost some of their hardcore fans. They need to seriously look at their business model because other high street shops like Zara operate very differently and are much quicker to get their newest designs in stores.”