Next Signals Price Hikes on the Horizon if War Drags On

Next raised its profit forecast for the fifth time this financial year after Christmas-period sales 'soared', signalling materially stronger-than-expected consumer demand. The upward revisions to guidance and robust holiday trading point to a positive earnings trajectory for Next and could lift the stock (likely a 1-3% move) and provide a tailwind for UK retail peers.

Analysis

Next raised its profit forecast for the fifth time this financial year after Christmas-period sales 'soared', signalling materially stronger-than-expected consumer demand. The upward revisions to guidance and robust holiday trading point to a positive earnings trajectory for Next and could lift the stock (likely a 1-3% move) and provide a tailwind for UK retail peers.