Clothing Retailer Next Cuts Annual Sales Expectations

According to the world clothing shoes and hats net, Britain is the largest.

Next PLC (NXT.L), one of the retailers, lowered the sales and profit expectations of the current 2016/17 fiscal year when it released the sales data for the Christmas holiday season in January 4th, and has repeatedly expressed the prospect of difficulty, especially the impact of the pound's depreciation on prices.

Next PLC (NXT.L) fell rapidly to 14.3% after opening 13.7% on Wednesday, 4. As the first retailer to disclose the performance of the holiday season, it dragged down Marks and Spencer Group PLC (MKS.L), French Connection (Marks), and other retail stocks, which also suffered the most setback 5.7% and 7.6% respectively.

Next PLC is now expecting a year-on-year decline of 1% in the end of January 2017, compared with a 1.75% decline of 1.25% and a pre tax profit forecast of 4.4% to 0.5% over the previous year, down 3.6%, or 821 million 300 thousand pounds from the 2015/16 financial year, to a median of 805 million pounds.

For the upcoming 2017/18 fiscal year (starting in February 2017), Next PLC believes it will be a challenging year as sales continue to shrink in the fourth quarter, which means clothing and

Consumption has entered a cyclical slowdown, coupled with the fact that consumer spending in Britain has been further oppressed by inflation and eroded real profit growth, and the sharp depreciation of the pound has led to a rise in the comparable cost of procurement (not more than 5%).

British supermarket group J Sainsbury PLC (SBRY.L) CEO Justin King before last year predicted that the price of food will increase by more than 5% this year. Last weekend, it also revealed that after the devaluation of the EU referendum pound, Next PLC's biggest competitor, Marks and, and, Marsha and Marsha, was forced to accept a substantial increase in the wholesale price.

The official figures released today by the British Retail Association show that the price of clothing and footwear in Britain has risen for the first time in nearly two years in December.

Taking all these factors into account, Next PLC expects sales to continue to decline next year. The median growth rate of fixed exchange rate is -1.5%, and pre tax profits will further reduce 2%-14% to 6.8-7.8 billion, far less than the market expectation of 784 million pounds.

The group also said it was preparing for the tough times, but more than 5% of its advance prices were forecast to weaken sales last year. Some analysts estimate that some retailers will absorb the cost of rising themselves to maintain market share.

In the past Christmas holiday season (November 1st -12 24),

PLC's full price sales fell by 0.4% year-on-year while the market was expected to grow by 2.2%, but the decline was narrowed by 3.5% over the three quarter ending October.

The brand, which has been on sale at Christmas, indicates that the stock before promotion is 3% lower than that in the same period last year, but sales decreased by 7% compared with the same period last year.

As of December 24th, Next PLC's annual YTD full price sales fell by 1.1%, while overall sales rose slightly by 0.4% under the promotion of new stores.

As the most successful clothing retailer in the UK in the past 10 years, chief executive officer Simon Wolfson said last year that 2016 (fiscal year 2017) would be the most difficult year since 2008.

Continued a year of pessimism, Next PLC (NXT.L) in 2016, the stock price dropped nearly 1/3 in 2016, while in the 2009-2015 year, the stock recorded a sizeable cumulative increase.

Deutsche Bank AG (DBK.DE), the 3 day of Deutsche Bank, took the lead in reducing the Next PLC (NXT.L) rating from "buy" to "hold" on Tuesday, and warned the group to rely heavily on the British market. Currently, 95% of the group's sales come from British consumers. It has about 540 stores in the UK and Ireland, and also uses franchising to develop international business.

To soothe investor sentiment, Next PLC said it would return 250 million pounds to shareholders through 4 special dividends in fiscal year 2018.

Until the deadline, Next PLC (NXT.L) fell narrowed to 7.99% and reported 4389 pence.

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