If you’d invested in: Next and Superdry
Shares in clothing retailer Next soared last September after the firm reassured investors with a “modest” profit upgrade.
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...
Superdry (LSE: SDRY)
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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".
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Alice grew up in Stockholm and studied at the University of the Arts London, where she gained a first-class BA in Journalism. She has written for several publications in Stockholm and London, and joined MoneyWeek in 2017.
-
Christmas at Chatsworth: review of The Cavendish Hotel at Baslow
MoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
By Dr Matthew Partridge Published
-
Tycoon Truong My Lan on death row over world’s biggest bank fraud
Property tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
By Jane Lewis Published