01 August 2018 by lberuti
NXTLN ( Next Plc ) announced this morning that second quarter own-brand sales rose 2.8% in the 12 weeks to July 28. Although it was a tad below analysts’ consensus, it was above the company’s own estimates. But what really caught investors’ attention was the company’s analysis of the situation. They explained that this bump was a result of the recent heatwave which prompted customers to buy more T-shirts, shorts and linen dresses. Importantly, they said that the purchases made in July would take demand away from August. Accordingly, they left their forecast for full year profit unchanged. Investors took it as a warning of what is to come for other clothing retailers. It was also a reminder that Britons’ free spending over the summer on everything from clothing to trips to the pub to watch the World Cup will have to end. Knowing that sentiment will not be helped by the political turmoil of Brexit either, they adopted a cautious stance on the British retailers which were the worst performing group in creditland today.