Clothing Brand Next May Be Worse Than Expected Before The Holiday Season.

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PLC (NXT.L) has already issued a financial crisis for second consecutive years before tax profits decline, but industry analysis is expected to be the most profitable in Britain.

Brand profit figures may be worse than expected.

According to the world clothing and shoe net, in early November, when Next PLC released three quarter earnings, the company estimated the pre tax profit of 2017/2018 billion in fiscal year to be 6.92-7.42 billion, with a median of 717 million pounds.

This means that the pre tax profit of the British group in the current fiscal year is 9.3% less than that of the 2016/17 fiscal year 790 million 200 thousand.

Today, Next PLC will release its pre season results.

British brokerage Numis Securities predicted that Next PLC had a 0.5% decline in the first two months of the fourth quarter; investment banking Share Centre Centre analyst Graham Spooner cited research institute Springboard boxing day and a week before Christmas.

Passenger traffic fell by 5.9% and 7.1% respectively, indicating that Next PLC and other British retail businesses could not make investors happy; Shore Capital analyst Clive Black said that the rise in UK cost and the rebound in sterling and weak consumer confidence could lead to many British retailers struggling.

As of the three quarter of October 29, 2017, the Next PLC group's total sales increased by 1.3%, an increase of 0.7% over the two quarter, but not as high as 4% of some analysts. Retail sales fell by 7.7% a year, which was offset by a 13.2% increase in the online and directory channels directly facing consumer sales. The group pointed out that this performance is consistent with the "national trend", as more and more consumers are shopping online, all retailers are experiencing the same pformation.

Next PLC CEO Simon Wolfson pointed out in the Quarterly Bulletin of early November that the sales performance of the group was still extremely unstable, and it depended on seasonal weather changes. For example, the cooling of the 8 and September accelerated the demand for autumn and winter clothing and stimulated the sales to rise significantly. The temperature deteriorated rapidly after entering the October, while the current consumers tended to shop when needed, so the weather played a decisive role in buying behavior.

For the current fourth quarter sales, Next PLC is expected to return again at full price, down 0.3%.

Management explains that although the outlook is pessimistic on the surface, the contrast base in the three quarter is very weak, so this year's growth has been strong, but the base in the four quarter has been stronger.

The group said that "weekly sales fluctuations make it hard to see potential sales trends".

At the same time, the three quarter financial report released the group's annual sales growth forecast as at the end of January 2018, narrowing from -2.0% to +1.5% to two to +1.25% after the two increase in September.

In response to the changes in consumption trends, Next PLC announced in November that it was a surprise announcement that the joint venture with Tesco PLC (TSCO.L), the largest British supermarket, will open shop stores in the latter stores. This is also a reality. Next PLC will need to expand its brand footprint, and at the same time, it will make up for consumers' demand for clothing consumption and the pformation to online channels with the help of the super large volume of business super.

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