NEXT is a UK based retailer offering exciting, beautifully designed, excellent quality

fashion and accessories for men, women and children together with a full range of

homewares# NEXT distributes through three main channels:


■NEXT Retail, a chain of more than 500 stores in the UK and Eire;
■NEXT Directory, a home shopping catalogue and website with around 3 million active customers and international websites serving approximately 50 countries; and
■NEXT International, with almost 200 mainly franchised stores around the world#
Other businesses in the NEXT group include:■NEXT Sourcing, which designs, sources and buys NEXT branded products;
■Lipsy, which designs and sells its own branded younger women's fashion products through retail, internet and wholesale channels; and
The parent company, NEXT plc, is listed on the London Stock Exchange #LSE: NXT#L# and is a member of the FTSE 100 Index# Total revenues for the year ended January 2012 were £3#5 billion with underlying pre-tax profits of £570 million# NEXT's head office is located in Enderby on the outskirts of Leicester, England

http://www.next.co.uk/

Questor share tip: Sell Next after stellar run

The sales performance at Next is impressive but Questor is worried about the credit accounts it has been built on



Shoppers walk past a Next clothes shop in central London. Next to sell clothes in US

Sears described Next as 'a superstar name in home-shopping' Photo: Jane Minga



By John Ficenec, Questor Editor

6:00AM BST 12 Sep 2014







Next
£69.50-215p
Questor says SELL


RETAILER Next [LON:NXT] reported strong sales growth in the first half of the year, but its shares fell sharply as investors worried that the record run might be over. Questor thinks it is a good time to take stock of the company’s gains.





The FTSE 100 retailers shares fell 3pc yesterday as the profit performance in the first six months of 2014 fell short of expectations. Britain’s second-largest retailer warned that the supportive environment of an improving economy, low interest rates and availability of credit might not continue into next year.


A rise in interest rates could damage Next Directory sales, which are a key area of growth for the retailer. More than two thirds of its 3.94m customers have a UK credit account, using the company’s offer of unsecured credit to buy products via the Next Directory Card.

These customers are liable for a “service charge” if they do not repay the outstanding balance on their card by the due date.

Next charges have an annual percentage rate (APR) of 25.99pc, compared with the APR for a standard bank credit card of between 18pc and 20pc.

The size of the service charge is revealed in the small print of the company’s annual report. In 2014, this was £151.8m, up from £140.4m the previous year. That income could struggle in a higher interest rate environment.

That said, Next’s shares have been on a staggering run during the past five years. The shares fell to about £10 in early 2009 after the financial crisis, and have since surged by seven times to more than £70 before yesterday’s trading update.

Earlier this year, Next overtook rival M&S to become the most profitable clothing retailer on the high street. Next has quietly gone about providing the UK with good quality, moderately priced clothing in its shops and online.

A large part of the success is down to the leadership of chief executive Lord Wolfson. He ensured the retailer embraced online retailing early and was also quick to adopt click-and-collect. The company has also retained its catalogue business, Next Directory, which provides dual advertising and sales.

In the latest results, directory sales were up 16pc to £694.3m and retail sales up 7.5pc to £1.07bn for the six months ended July. The group’s total revenues increased 10.3pc to £1.85bn, and pre-tax profits were up 19.3pc to £324.2m in the first half. Analysts were hoping for income of about £330m.

The retailer also generates plenty of cash, with cash flow from operations increasing to £300m in the first six months, up 27pc on the same period last year.

Next likes returning spare cash to investors and paid three special dividends of 50p each in February, May and August this year. This comes on top of the forecast 150p in annual ordinary dividends. The company will comment on next year’s cash returns in its interim trading update at the end of October.

The market is expecting the returns of cash to increase from about 300p this year to 380p next year, giving the shares a pretty decent 4.1pc prospective yield, rising to 5.2pc next year. Analysts are forecasting full-year pre-tax profits rising to £800m, on revenue up £4.05bn, giving 408p in earnings per share for the year ended January 2015.

The shares are currently trading on 17.5 times forecast earnings, falling to 16.2 times next year. Next is a great British retailing success story, but Questor is concerned that the engine room of those sales, the Next Directory business, includes a lot of credit support.

It has been a fantastic run in the shares, but Questor thinks now is as good a time as any to take profits. Sell.

Next aims to lure wealthy customers as it plans to stock more expensive items after profits jump

By Rupert Steiner

Published: 22:29, 11 September 2014 | Updated: 22:29, 11 September 2014

Retail giant Next posted a strong half-year update and said it will stock more expensive items for its wealthier customers.
Britain’s second-largest clothing firm – behind Marks & Spencer – has been a star performer on the high street, having grown its online and catalogue business with its retail outlets.





Star performer: Next is Britain's second-largest clothing firm



Chief executive Lord Wolfson said the chain would start stocking a small range of items for customers willing to pay more than the average £80 for a dress.


It will stock some dresses costing up to £150 as part of its Signature range and men’s suits priced as much as £300.


Wolfson said this was not a move upmarket by Next, which saw pre-tax profit rise 19.3 per cent to £324.2million on sales of £1.85billion.


It said: ‘Over the last six months Next has experienced its strongest sales growth for many years.


‘We have made good progress improving and extending our ranges, opening profitable new space, improving our service and growing our online business, both in the UK and overseas.’


Some of the performance was due to the improving economy with low interest rates and increasing availability of credit.




He warned future trading may not see such a benefit. ‘Some of these factors are likely to be less favourable next year,’ he said.


‘And this year’s fine summer weather could present tough comparatives next year, when interest rates are also expected to rise.’


The shares fell 215p to 6950p.


Next believes it has benefited from a trend among older customers to wear the same fashion as younger generations. It said those aged about 60 are buying the same items of those aged 40 as they don’t see age preventing them from following fashion trends.

12 Sep Numis 6,750.00 Hold
12 Sep Exane BNP... 7,250.00 Neutral
12 Sep Jefferies... 8,000.00 Buy
11 Sep Credit Suisse 6,800.00 Neutral
11 Sep Investec 7,000.00 Hold
11 Sep Cantor... 7,400.00 Buy
10 Sep Espirito... 5,500.00 Sell
3 Sep Jefferies... 8,000.00 Buy
2 Sep Deutsche Bank 6,700.00

Trading Statement

RNS


RNS Number : 9237S

Next PLC

30 September 2014






Date: Embargoed until 07.00hrs, Tuesday 30 September 2014

Contacts: David Keens, Group Finance Director
NEXT PLC Tel: 0844 844 8888

Alistair Mackinnon-Musson Email:
next@rowbellpr.com
Rowbell PR Tel: 020 7717 5239



NEXT PLC
Sales Update

Later this week NEXT will be conducting its biannual investor meetings. Given the recent spell of unseasonably warm weather it is inevitable that shareholders will enquire about current trade. In order to ensure that we can have open conversations with our investors, we make the following observations:

1) Cooler weather in August resulted in several very strong weeks. However, warmer weather in the more important month of September has had the reverse effect. The overall effect is that Quarter Three sales to date are up 6%, which is lower than our previous forecast of +10%.



2) At present our profit forecast for the full year remains within our previous guidance given on 29 July and reiterated on 11 September, and our experience suggests that some lost sales are regained when the weather turns. However, if this unusually warm weather continues for the full duration of October then we are likely to lower our full year profit guidance range of £775m to £815m.

Our next Interim Management Statement will cover the thirteen weeks to 25 October and is scheduled for Wednesday 29 October 2014.

shame other companies are not as open but prefer to drop lorry-loads of manure on them without warning

30 Sep Investec 7,000.00 Hold
30 Sep Cantor... 7,400.00 Buy

Buyback level rised to £66 as far as i remember..

14 Oct Deutsche Bank 6,700.00 Hold

24 Oct Investec 7,000.00 Hold

Trading statement Wed 29 Oct

Sharecast - Numis said Next may not achieve its 10% sales guidance, possibly leading to a slight reduction in full-year profit, due to warmer weather in September.

"Nonetheless, we note that the group has restarted its share buyback and expect any trading setback to be temporary."

Interim Management Statement

Dragged into a Next Living by the "Trouble". Not exactly busy when I went. Will short if stock moves back up and then stalls.

Next: Cantor Fitzgerald reduces target price from 7400p to 7100p leaving its buy recommendation unchanged. Investec reduces target price from 7000p to 6800p staying with its hold recommendation.

Next: Citi reduces target price 7900p to 7300p and reiterates a buy recommendation. HSBC upgrades to overweight with a target price of 7350p.

Questor share tip: Sell Next as growth slows

The sales growth at Next is slowing and it is finding it difficult to justify the premium rating, says Questor

http://www.telegraph.co.uk/finance/markets/questor/11196361/Questor-share-tip-Sell-Next-as-growth-slows.html

4 Nov Beaufort... 7,775.00 Buy

5 Nov Berenberg 7,775.00 Buy

25 Nov Cantor... 7,100.00 Buy

26 Nov Canaccord... 7,500.00 Buy
26 Nov JP Morgan... 7,100.00 Neutral