Next: Out of fashion

Clothing retailer Next has released gloomy results, yet the firm’s shares rallied strongly. Why? Ben Judge reports.

Clothing retailer Next has released gloomy results, yet the firm's shares rallied strongly. Why? Ben Judge reports.

Clothes retailer Next (LSE: NXT) has long been a stockmarket favourite. Between 2008 and the end of 2015, investors saw its shares rise by more 500%. But now things are looking grim. Last week, Next reported its first annual fall in profit for eight years and warned that 2017 "looks set to be another tough year". Total sales fell by 0.3%, with a 2.9% decline in high-street sales not quite offset by a 4.2% rise in online sales via Next Directory, its mail-order business. Pre-tax underlying profit fell by 3.8% to £790m, and it expects profits for the coming financial year to be down as well, at between £680m and £780m.

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Ben Judge

Ben studied modern languages at London University's Queen Mary College. After dabbling unhappily in local government finance for a while, he went to work for The Scotsman newspaper in Edinburgh. The launch of the paper's website, scotsman.com, in the early years of the dotcom craze, saw Ben move online to manage the Business and Motors channels before becoming deputy editor with responsibility for all aspects of online production for The Scotsman, Scotland on Sunday and the Edinburgh Evening News websites, along with the papers' Edinburgh Festivals website.

Ben joined MoneyWeek as website editor in 2008, just as the Great Financial Crisis was brewing. He has written extensively for the website and magazine, with a particular emphasis on alternative finance and fintech, including blockchain and bitcoin. 

As an early adopter of bitcoin, Ben bought when the price was under $200, but went on to spend it all on foolish fripperies.