Next shares jump 6% higher after trading statement

Thursday, 3rd January 2019 09:39 - by Rajan Dhall

Next have announced sales were boosted by a late Christmas surge in sales. The Co. stated three weeks prior to Christmas and the October half-term holiday had made up for a "disappointing" November.

Apparently, online sales rose 15.2% between 28 October and 29 December from a year earlier, while store sales fell 9.2%. This would mean In total, full-price sales were up 1.5% over the period.

The Co. expects an annual profit of £723m vs prev expectations of £727m.

The weekly charts shows a pretty bearish picture, price has fallen significantly since hitting the high on the chart between May and Sept. The 4489p resistance held strong this morning as prices crept higher following the release of the statement. Elsewhere, 5000p may also be a sticky point as the value area represented on the right-hand side falls close to that level (biggest point of the bell curve) and it may be an obvious psychological barrier. Longer term it seems that the issues on the high st. will continue to persist. Unless the Gov. provides some relief measures the bearishness looks set to continue. The chancellor stated in the last annual budget that the plan is to tax online retail more and provide some subsidiaries to the high st. but we are yet to hear more details.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.