Next confirmed its status at the top of the retail pantheon with its latest trading statement, which saw the clothing retailer upgrade its full-year sales and pre-tax profit guidance. But its shares look fairly valued.
Anyone familiar with Next's well-practised tactic of low-balling guidance won't be too surprised at the upward revision, but that doesn't detract from the fact that few retailers can match its ability to cope with what remains a difficult retail environment. Brand sales are expected to climb between 2 per cent and 4.5 per cent this year, once again ahead of earlier guidance - that reflects a strong performance from its online operation. And a 0.2 per cent increase in physical retail sales is impressive in the light of the weakness at rivals such as Marks & Spencer, which saw underlying general merchandising sales slip 6.8 per cent in its first quarter.
