Strong results from next5 Jan 2023 07:28
Time to move back to 45p
Below from Next results. Note it’s Next and not the debt ridden National Exoress
Atb
Outlook for Cost Price Inflation
We now expect the cost price inflation on like-for-like goods to peak at around 8% in the Spring Summer season. However, we expect inflation to be no more than 6% in the second half. This Autumn Winter figure is only an estimate at this stage, as we are still negotiating prices; but it does appear that cost pressures are now easing through a combination of reducing freight costs and lower factory gate (dollar) prices.
Factory gate prices for the second half are benefiting from:
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The decline in the price of key commodities, for example, cotton and polyester.
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Increasing factory capacities resulting from a slowdown in global demand. (Even if consumers maintain their cash spending, inflation in selling prices will reduce the amount of units they buy, thus reducing factory production.)
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New sources of supply.
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The devaluation of some local currencies against the dollar.