Next Has Not Set Up Shop In China But Has Become The British Fashion Champion.

Next PLC (NXT.L), as expected by the market, announced today that it would cut its full year profit target. But thanks to the strong boost of e-commerce to Christmas sales, the second largest British retailer's holiday season outperformed market expectations and led the British retail partners to move forward.

As the most profitable clothing brand in the United Kingdom, the financial report boosted the apparel stocks once again to prove that Next PLC is already the new king of fashion in the market. It also shows that doing a single market oriented is not only the most reliable for the conservative British retail brand, but on the contrary, it is enough to dominate the market.

In contrast, companies and brands such as ASOS PLC (ASC.L) and Superdry PLC (SDRY.L), which had been cut down or even faced bankruptcy, were punished for their weak international market or radical investment.

On the contrary, whether Next PLC or cheap brand Primark, the Chinese market, known as the "market for competition" in the past few years, has not opened a store but has become the best performing British brand.

As the first big retailer to announce the performance of the holiday season, Simon Wolfson, chief executive of Next PLC, is a strong shot at investors.

He pointed out that although a series of risks in Europe are still hanging on the head, wages in Britain have increased substantially, and employment has been strong.

In the first two months of the fourth quarter of October 28th to December 29th, the positive sales of Next PLC increased by 1.5%, slower than the 2% in the three quarter. The Next Directory (directory and online) business, which accounted for more than 50% of the total sales, was offset by a decline of 540 real store 9.2% by a strong increase of 15.2%.

Management said the exceptionally warm weather in November made sales slack, but demand rose sharply in the three weeks before and after Christmas.

The group continued to maintain its tradition of discount sales only on Boxing Day December 26th.

Simon Wolfson points out that online sales, which began to slow down in the first four weeks before Christmas, are growing stronger as the festival approaches.

Chain Corporation John Lewis Partnership weekly shows that sales have recorded a rapid growth of 4.2% and 4.5% in the past two weeks, while fashion sales have increased by nearly 11%.

Independent retail analyst Nick Bubb believes that the leading online business is an important reason for Next PLC and John Lewis Partnership to win. On the contrary, relatively weak Marks and Spencer Group Spencer (Marx), Marsha general store and department store group can continue to lose their peers.

Michelle Wilson, a Berenberg analyst who suggests selling Next PLC (NXT.L), points out that the group's same store sales are worse than market expectations, which is bad news for Marks and Spencer Group PLC Marsha general merchandise.

Before Christmas, the ASOS PLC (ASC.L) surpassed the confidence of investors in Britain and even European apparel retailers. The day of the day, the price of the fashion business dropped by 40%.

Today, when Next PLC (NXT.L) releases favorable results, the stock price has surged 8%, and Marks and Spencer Group PLC (MKS.L), Debenhams PLC (MKS.L) and mother enterprise (NXT.L) have recorded the biggest increase of 5.16%, 8.19% and 3.14%, and the largest increase has been in the market.

Next PLC raised the outlook for pre tax profit in the 2019 fiscal year ending January as slightly from 727 million pounds to 723 million pounds, slightly lower than the market expectation of 725 million pounds, mainly because the growth of e-commerce has increased the operating costs, and the increase in the proportion of sales of gifts and Cosmetology seasonal commodities also oppressed the gross profit margin, and the pre tax profit in the 2018 fiscal year was 726 million 100 thousand pounds.

The median annual price growth is expected to increase from 3% to 3.2%, while EPS will benefit 3.6% from share repurchase.

For the 2020 fiscal year, the Group believes that the UK's economic environment will be similar to the latter half of the past half year, but the instability based on Europe will become more intense.

Next PLC expects annual sales to rise by 1.7% annually, while pre tax profits will further fall to 715 million pounds, which means that the index will not grow for four consecutive years.

Next PLC (NXT.L) fell by 10% in 2018, and the most recent rebound in the two days since 2019 is 13.35%, 4510 pence higher. Liberum analyst Wayne Brown raised its target price to 6100 pence, while raising the rating from "holding" to "buying".