High street retailer NEXT is enjoying post BREXIT economic boom.
Next reports its half-year results on Thursday and analysts expect it to continue its recovery after a tough start to the year.
Simon Smith, head of research at FxPro, said the company took a hit in the immediate aftermath of the EU referendum result.
“However, the economic impact of Brexit has not been as bad as expected and recent retail sales data has shown a surprisingly resilient UK consumer.”
Smith said growing consumer confidence points to a strong post-referendum rebound: “Competition in clothing retail is less fierce than in the grocery sector and with the UK enjoying decent summer weather for once, Next’s share price could continue to recover lost ground.”
Charlie Muir-Sands, research analyst at Deutsche Bank, said Next is gaining market share again, helped by its online Directory business.
“Its balance sheet and liquidity remain strong and the fi rm has begun gradually to raise full-year profit guidance.” He said the weaker pound may force up costs, but this was manageable and the stock was a buy on an undemanding valuation of 12.7 times forecast earnings for 2017.
Next’s share price has picked up over the last month, but it still trades 25 per cent lower than a year ago.
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