Next Outperforming in a Struggling Sector

The Week: Morningstar columnist Rodney Hobson notes Next's strong share price rise this year and says investors should be cautious

Rodney Hobson 20 September, 2019 | 10:57AM

Next

Clothing and homewares retailer Next (NXT) was widely praised for its clear and comprehensive reporting of its performance in the six months to July. The figures weren’t bad either, given the parlous state of the High Street and the highly competitive nature of retailing.

Retail sales were admittedly down 5.5% but that was more than offset by a 12.6% jump online, where revenue topped £1 billion to easily outstrip the shops. More starkly, online profits are now three times as great as those from the shops, such are the benefits of not having to carry the cost of bricks and mortar or paying staff whether customers need attention or not.

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About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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