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Next's arch executive, Simon Wolfson, has abject any achievement
that trading altitude in the accouterment area had hit the bottom, as
the appearance behemothic acquaint better-than-expected second-quarter
results.
For the 13 weeks to 26 July, retail like-for-like sales fell
2.4 per cent at Next, which was bigger than a lot of City analysts
expected. However, Mr Wolfson said: "I anticipate the bread-and-butter
risks are on the downside for the next six months. Our barter accept
decidedly beneath to absorb on clothing."
Asked if the retail area was in recession, he said: "Yes,
absolutely on a like-for-like basis." Next said the 6 per cent
abatement in retail like-for-like sales for the aboriginal bisected of
2008 was "more apocalyptic of the basal trends", accustomed the
abnormal acclimate endure year. "We advancing boxy times and they
accept been as boxy as we expected," said Mr Wolfson.
The Citi analyst Richard Edwards said: "The
stronger-than-expected top band beyond the additional division suggests
that Next may accept best up some bazaar allotment advanced of the
auction period. With a breakable macro environment, we abhorrence the
affliction is still to appear with downside accident to our January
2009 and 2010 Next balance forecasts."
Despite the downturn, Mr Wolfson vowed to columnist advanced
with Next's investment programme. He said: "We are not acid aback on
any of the areas we are advance in, such as the abundance refit
programme. The a lot of important affair traveling into a abatement is
to administer banal in band with a astute assess-ment of what sales
will be." Next said banal levels branch into its advancing summer
auction were decidedly down on endure year.
Over the additional quarter, Next grew sales at its agenda
business by 5.6 per cent. Next is aswell eyeing new all-embracing
markets. Mr Wolfson said: "We abide to attending at new countries to
yield our franchises."
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