Broker snap: Bleak midwinter sales at Next

Financial services group Matrix highlights the weak sales figures at Next as atypical of the sector and places the target price for the high street fashion chain under review.For the five months to 24 December, the group blamed its poor sales on bad weather and poor availability of best selling lines, but the broker suggests that it "looks like poor judgement rather than bad luck." Retail sales were down 6.1% but Directory sales were up 8.7%. "We have consistently valued Next at a 15% discount to the general retail sector to "reflect the company's lack of sales growth potential," says analyst Tom Gadsby.While its full-year earnings per share forecast remains unchanged at 215p, the broker places the target price of 2,077p under review and places the group in its 'reduce' category.