Next Plc Q1 trading statement

Retail customers were driving a hard bargain, with Next having to discount heavily during this period especially compared to last year. Even with these discounts, Next had to rely on more profitable consumer finance products to hold up weak sales data. This isn’t unexpected, but is yet more evidence that the economy is fragile. There's a real chance that that one more Bank of England base rate rise could break it.

Next, like many businesses on the high street, understandably has a few nerves given current market conditions. Its Q2 results are cautious as it is concerned about its ability to repeat the stellar revenue generated in the same period in 2022, which was buoyed by warm weather and pent-up demand for weddings and other post-pandemic events. A more muted year-on-year Q2 is expected with a moderated forecast for lower growth, due to the headwinds facing the high street caused by inflation and rising interest rates.