In this article, you will get all information regarding Next and Boohoo Investors See Sales Increase as Customers Get Help on Energy Bills – UK Time News
ashion brands Next and Boohoo will shed light on how consumer budgets fare in the current high inflation environment when they release their latest corporate results next week.
FTSE 100-listed Next is expected to tell shareholders that sales grew in the first half of the year as the chain saw an uptick in shoppers visiting stores and stocking up on clothes for the warmer weather.
However, bosses can warn of the impact of higher cost of living on consumer purchasing power.
In August, Next said inflation in the second half of the year is likely to affect sales, with prices rising by as much as 6% in the fall and winter, coupled with households that have less disposable income to spend on non-food items. essential items to spend.
But investors will watch for a shift in outlook after the government’s recent energy bailout package, which promised to limit household electricity bills to £2,500 a year from October.
It means that households may have more purchasing power than previously thought and have a knock-on effect on retail spending.
Next is expected to post a pre-tax profit of £380 million for the first half of the year, according to analysts at Numis Research. This leaves just under £500 million to raise to achieve the £860 million annual profit that Next led in its most recent update.
The fashion giant had raised its full-year outlook by £10m as a result of better-than-expected sales in the first half of the fiscal year.
It will announce its half-year figures on Thursday, September 29.
Investors will also be looking at the interim results from online fashion rival Boohoo on Wednesday, Sept. 28, to get an indication of how the retail sector is faring.
In its previous quarterly results in June, the company reported a slump in sales as it battled dwindling consumer confidence, fierce competition and higher yields.
Analysts at Numis Research noted that Boohoo has since introduced a £1.99 return fee for customers, which investors can expect an update on, as well as the recent move to set up new automated warehouses.
Boohoo is expected to report a slight 1% decline in sales for the second quarter of the year, according to Numis Research.
Shareholders will also be aware of updates on retailers’ exposure to higher costs and whether these will be passed on in prices.
Next and Boohoo Investors See Sales Increase as Customers Get Help on Energy Bills – UK Time News
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