There’s an upbeat update from Next this morning that revealed a surprise uptick in sales over the last quarter.
Full price sales rose 5 per cent in the second quarter, beating forecast by £50m. This came despite fears that trading would fall below pre-Covid levels.
Next, positive developments from the heatwave contributed, as well as higher demand for formal wear as social events such as weddings returned.
As a result, the retailer raised its full-year profit forecast by £10m to £860m.
But not everything was rosy. Next said it does not expect the trade surge to last and warned that the impact of inflation on consumer spending would worsen in the second half of the year.
5 things to start the day off right
1) Walls approach Zuckerberg as executives exit Meta Deep turbulence within the social media giant and brain drain at the top make the founder seem increasingly isolated
2) Rural households are clamoring for onshore wind turbines, Octopus boss says The utility says it’s “pushing for an open door” with plans to boost output.
3) Taiwan crisis wreaks havoc at ports and disrupts one of world’s busiest shipping lanes China’s live-fire military exercises raise fears of delays and collisions
4) UN chief attacks ‘immoral’ oil companies claiming they punish the poor António Guterres calls for action against energy companies worldwide
5) Wildfire fears prompt Marks & Spencer to stop selling disposable grills The London Fire Brigade is urging other retailers to follow suit
what happened overnight
Asian stocks advanced this morning, taking hints of a strong Wall Street rally after robust economic data and upbeat corporate forecasts boosted investor appetite.
Japan’s Nikkei rose 0.6 percent, while Chinese blue chips also rose 0.6 percent and Hong Kong’s Hang Seng rose 1.2 percent, with an index of its tech stocks rising 2.3 percent.
MSCI’s broadest index of Asia-Pacific stocks rose 0.7 percent.
- Company: Pantheon International (annual results); Centamin, ConvaTec Group, Evraz, Glencore, Hikma Pharmaceuticals, Informa, Meggitt, Mondi, Morgan Sindall, Next, Rolls-Royce, Serco, Spirent Communications, Tritax Big Box (interim)
- Business: Bank of England Rate Decision (UK), Construction PMI (UK), Unemployment Claims (US)
https://www.telegraph.co.uk/business/2022/08/04/ftse-100-markets-live-news-boe-interest-rate-energy/ Heatwave and return of weddings spark surprise jump in sales at Next