The fall in Next’s (NXT) share price following the announcement of its third-quarter trading statement feels overdone. The group's numbers revealed an 8 per cent fall in retail sales across stores, but this was more than offset by strong online growth – a 13 per cent improvement no less. In fact, it was these web-based sales that helped lift total full-price sales for the period by 2 per cent, leaving growth up 3.7 per cent for the year to date.
But it seems any mention of high street trouble sets investors’ teeth on edge these days – and rightly so given the poor outlook. Chancellor Philip Hammond’s Budget promise to cut business rates and start taxing online marketplaces such as Amazon has been met with indifference given its likely lack of effect, while WH Smith (SMWH) announced a further move away from the UK high street by acquiring US airport retailer InMotion to bolster its travel business.
Crucially, Next bosses are sticking to their full-year guidance, specifically full-price sales growth of 3 per cent, pre-tax profits of £727m and EPS growth of 5 per cent.
