Next Will Launch Its Own Brand In August.

According to the world clothing shoes and hats net, Britain is the most profitable.

Retailer

PLC (NXT.L) will launch a new self operation in August.

The brand will be led by Gemma Metheringham, creative director of Next Label department.

Although the trend has been strong, but from the three quarter of last fiscal year began to feel the brutality of retail cold weather, the company's profit in the 2016 fiscal year ended January was the first to decline after the financial crisis, and the Group CEO Simon Wolfson was also pessimistic about the current financial year.

The industry speculated that the new Next PLC brand was launched to cope with the strategy of John Lewis Lewis to strengthen its own brand business, and it was also the signal of the group's attempt to strengthen the Next Label of the third party sales platform business, which includes brand Oasis, Ted Baker, Dune and Monsoon of the group's competitors.

The market did not give a positive signal to the launch of the new brand. On the contrary, the group was downgraded by Credit Suisse Credit Suisse on Thursday.

The Swiss investment bank's report released Thursday lowered the rating of Next PLC to the "big market" and lowered its target price from 4250 pence to 3956 pence, with an amplitude of 7%.

The company said its survey found that the entry price of Next PLC products was lowered in spring and summer products, which seems to have led to a weaker than expected market performance in the first quarter.

According to the data, as of the first quarter of April 29th, the overall sales of Next PLC group declined by 3%, of which the full price business dropped 8.1%, while the discount business increased by 3.3%. The group said the performance was in line with the forecast for the first quarter when the annual report was released at the end of March. The Group expects revenue growth in the current fiscal year to be -3.5-2.5% at the end of March, but the expected performance in the first quarter is lower than that in the whole year.

In the first quarter, the performance was the worst in February, sales fell by 4.6%, and in 3 and April, the overall decline was 2.2%.

While the first quarter results were updated, the group lowered its annual profit forecast from 6.80-7.80 billion to 6.80-7.60 billion.

Credit Suisse said in its report that the bank believes that it is a wrong strategy for mature retailers to expand the UK's sales space, while the credit, international and Label business of Next PLC will help and weaken even in the next two years.

As Next PLC "profits, margins, cash flow declines", the group's value will collapse.

Affected by the report, Next PLC plunged 6.14% to 4037 pence on Thursday, according to Credit Suisse's target price of only 2% of the space.

Before the Credit Suisse, many large banks issued negative reports on Next PLC.

In April 7th, the Canadian investment bank Canaccord Genuity released a report that lowered the Next PLC PLC rating to "sell", and lowered its target price from 4400 pence to 3714 pence; in March 9th, Berenberg Bank released the report to maintain Next PLC, "hold rating" and target price 4000 pence; Jefferies Group LLC lowered the target price in February 28th sharply, from 4600 pence pence to 3500 pence, rating as "hold"; HSBC Holdings Limited in February 15th, the target price of the UK high street brand group was only 3530 pence, and the rating was a negative "reduction".

The recent report on Next PLC is only Redburn Partners. The bank gave Next PLC "buy rating" in its March 1st report.

At present, 8 of the 23 mainstream investment banks have a "sell" rating on Next PLC, with 11 rating "holding" and only 4 buying ratings, with an average target price of 4487.24 pence.

Next PLC shares have recorded a 18.98% decline so far this year after a sharp fall on Thursday.

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