FTSE 100 higher despite hit to retail shares
Shares in Next dropped nearly 9%
by Abi Moses on 3rd November, 2017
Shares in Next dropped nearly 9% in early trade after the fashion retailer issued a cautious trading update.
In a statement, has revealed that trading has been “extremely volatile”, adding that this volatility made it hard to determine any underlying sales trends.
Online sales growth at Next’s Directory business continued to offset tumbling sales on the High Street, with sales up 1.3% in the quarter.
Sofie Willmott, senior retail analyst at , said: "Next's first positive results in over a year are not enough to signal a long-term reliable turnaround for the High Street stalwart.
"Though the online channel continues to outstrip store performance, the rate of growth continues to slow year-on-year.
"Next must continue to invest in its online platform to meet rising consumer expectations."
Neil Wilson, a senior market analyst at ETX Capital, said: "Next had better hope that British shoppers are a little less fickle than the weather, because sales performance is so volatile the firm has no idea what to expect over the vital Christmas trading period.
"This is a worry, although there does seem to be an improving trend in sales growth throughout the year.”
Additionally, shares in rival retailers were also hit by Next’s update, with M&S lower by 5.6%.
Meanwhile, Primark owner Associated British Foods dropped 1.8%, while Debenhams dropped 3.4%.
Differently to the retail sector, shares in Standard Chartered bank tumbled 6.2% after its third quarter revenue of 4% fell short of expectations.
Though, the wider market was up, with the benchmark FTSE 100 index 14.38 points higher at 7,507.48 shortly after midday.
Overall, it was Paddy Power Betfair who was the biggest riser in the index, climbing approximately 4.5% after it reported higher third-quarter revenues and made a small increase to its full-year earnings forecast.
Revenues in the three months to 30 September heightened 9% to £440m, and it now expects underlying earnings to be between £450m and £465m.
On the currency markets, the pound was bolstered by the recent PMI survey. This survey indicated a robust growth in the UK’s manufacturing sector. Sterling rose 0.1% against the dollar to $1.3296 and was 0.3% higher against the euro at €1.1444.
Be sure to check out our blogs for regular updates on the finance sector at, http://spreadbetting.ltd.uk/blog.
Sky shares on the rise amid intense takeover talks
by Abi Moses on 25th April, 2018
Cloud storage business recreated Snap IPO
by Abi Moses on 28th March, 2018
The world's first whiskey Cryptocurrency has landed
by Abi Moses on 26th March, 2018
Soft drinks giant to tackle growing Japanese 'alcopop' market
by Abi Moses on 7th March, 2018