Next share price takes a hit after Wolfson warning

Fashion and homewares giant Next has seen 15% wiped off the value of its share price after it predicted a “challenging” year ahead.

This was despite the Enderby-based FTSE 100 company seeing pre-tax profit increase 5.2% to £836.1m on a turnover that increased 4.4% to £4.2bn (2015: £4bn) in the full year to January 2016.

The firm’s shares suffered their biggest one-day fall since December 2008, down £10.05 to £56.55.

As recently as June last year analysts were predicting that Next shares would reach a value of £100 each.

Strong year for Next but future is less certain

But last week the company warned that 2016 will be a challenging year with much uncertainty in the global economy – chief executive Lord Wolfson said that it “may well be the toughest we have faced since 2008”.

He added: “It looks as though we may be set for a challenging year, with economic and cyclical factors potentially working against us.

“We are very clear on our priorities going forward and whatever challenges we may face, it is important that we remain focused on ensuring that the company’s product, marketing, services and cost controls all improve in the year ahead.”