If only…
Shares in clothing retailer Next (LSE: NXT) soared last September after the firm reassured investors with a “modest” profit upgrade. They then slipped in October after Next warned that sales remained “extremely volatile” and would probably decline.
In May Next raised its full-year profit forecast from £705m to £717m as the sunny weather boosted quarterly sales; full-price sales in the 14 weeks to 7 May rose 6% as an 18.1% increase in online sales offset a 4.8% decline in stores. Still, Next doesn’t expect to see similar growth rates again this year.
Be glad you didn’t buy…
Fashion brand Superdry (LSE: SDRY) enjoyed a strong ending to last year but in January its shares tanked as it reported sales growth of 4.7% in the ten weeks to 6 January, compared with a 14.9% surge the year before.
In May they fell again as Superdry revealed that sales in its shops fell 6% year-on-year to £86.1m in the three months to the end of April, partly because of cold weather. Investors were also spooked by the retailer’s forecast of only “high single-digit” revenue growth in its new financial year; the firm has warned of “challenging conditions”.