24 March 2016 by lberuti
Recently the British government cut their economic growth forecasts. Today NXT ( Next Plc ) said spending on clothing will not be able to escape the slowing economy. Its CEO likened the year ahead to “walking up the down escalator, with a great deal of effort required to stand still”. He added that 2016 may be the toughest year since the Great Financial Crisis in 2008. Such cautious comments from a company known as one of the industry’s bellwethers added to concern over the outlook for UK retailers, with consumers’ confidence declining in February and the potential Brexit weighting on sentiment. NXT lowered their forecast and now see revenue down 1 to 4% for the year to come, when they expected them to be up 1 to 6% at the very beginning of January. NXT’s 5 year risk premium was duly marked 12.5bps wider at 84.5bps, dragging with it the whole retailing sector (MKS - Marks and Spencer Group Plc - was 11.5bps at 135bps for instance).