Next is one of the best-performing retailers in the FTSE 350 this year, with its shares up 48% in the year-to-date and at a record high after today’s update.
Yet analysts don’t expect the gains to last — Next has one of the biggest predicted downsides of any UK retailer stock, with analysts seeing shares falling nearly 8% over the next 12 months, according to Bloomberg data.
Given the shares have performed so well, it’s going to be a tough ask for Next to keep on hiking guidance, especially as its UK sales growth is expected to slow.
And with the budget around the corner, consumers have been more focused on shoring up their savings ahead of expected tax hikes, which could make them more cautious in terms of their spending over Christmas.
