|Bid||5,840.00 x 0|
|Ask||6,700.00 x 0|
|Day's range||5,936.00 - 6,486.00|
|52-week range||3,970.00 - 6,490.00|
|Beta (3Y monthly)||1.34|
|PE ratio (TTM)||14.33|
|Earnings date||19 Sep 2019|
|Forward dividend & yield||1.68 (2.86%)|
|1y target est||5,337.47|
British retailers endured their worst September since at least the mid-1990s as people spent money on entertainment instead, according to surveys that painted a muted picture of household demand ahead of Brexit. In a potential warning sign for consumer spending, which has helped the economy in the run-up to Brexit, the British Retail Consortium said total retail sales values declined 1.3% in September compared with the same month last year. A separate survey published on Monday by payment card company Barclaycard showed broader consumer spending -- which includes retail sales -- rose by a "modest" 1.6% in annual terms in September.
Shares in Next (LON:NXT) are currently trading close to a 52 week high, with the share price up by around 7.63% to 6300p over the past week. On a one-month bas8230;
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* European stocks rise 0.6%, banks outperform (+1.9%) * Fed's hawkish cut, value rotation boosts banks * Fed helps calm market anxious over repo rate spikes * Bank of England keeps rates steady, FTSE up 0.6% * Next down 5.7% on weak Q3 outlook * European steel stocks fall on US Steel warning Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://firstname.lastname@example.org CLOSING SNAPSHOT: STOXX POWERED BY BANKS (1626 GMT) A hawkish rate cut at the Fed made the day for banks, sending their sectoral index rising 1.9% to score its first positive day in four.
* European stocks rise 0.6%, banks outperform (+1.7%) * Fed's hawkish cut, value rotation boosts banks * Fed helps calm market anxious over repo rate spikes * Bank of England keeps rates steady, FTSE up 0.6% * Next down 5.6% on weak Q3 outlook * European steel stocks fall on US Steel warning Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://email@example.com AFTER FED, TIME TO TAKE PROFITS?
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.The cost of baby clothes could rise in the U.K. if the country crashes out of the European Union without an agreement, according to retailer Next Plc.Few sleep-suits and other newborn items are made in the U.K., leaving these clothes exposed to tariffs under a temporary regime unlike some women’s garments, Next Finance Director Amanda James said in an interview Thursday.“If you import a baby grow under the temporary tariff regime, you would still pay duty and that doesn’t seem to make any sense,” James said by phone. “There doesn’t seem to be any sort of pattern as to why baby grows have their tariffs left on and a lady’s jacket doesn’t.”Next urged the government to review the list of items that will face temporary tariffs as it reported half-year results. The cost of men’s underpants and jackets may also go up under a catalog drawn up by the U.K. department for international trade. Fears of product shortages and supply-chain disruptions were reinforced last week when U.K. Prime Minister Boris Johnson published the government’s worst-case scenario for a disorderly Brexit.Slow StartDiscrepancies in tariffs on apparel aren’t the only cause for concern for the Leicester, England-based clothier. Autumn sales got off to a slow start, the company said, clouding near-term prospects at one of the country’s best-performing retailers. Next’s shares fell as much as 5.2% in London, though they’re up 48% this year.Concerns about the EU divorce have prompted consumers to slow spending, a change Next has weathered better than rivals by investing in e-commerce. Overall clothing prices will probably decline about 2% at the retailer as most items don’t face tariffs, according to Chief Executive Officer Simon Wolfson.Even if the U.K. and the EU are unable to reach a divorce deal, Brexit doesn’t pose a material threat to its operations or profitability, the company said. The tariff regime would in fact reduce the company’s import duty by 25 million pounds ($31 million).“Prices on kidswear will come down, but they could come down more on certain categories,” said Wolfson, who has spoken in favor of Brexit. “For example, on children’s coats tariffs are being abolished, bringing prices down, but on baby grows they’ll still be there.”Baby and children’s clothes are a cornerstone of Next’s growth strategy. The retailer struck a new product license agreement with Ted Baker Plc in August with the aim of driving sales in that category.The company already has agreed on prices for 80% of its stock to be sold in the first half of next year, it said, although customs clearance will cause additional administration costs of around 150,000 pounds per year.(Updates with CEO comments on costs in sixth paragraph.)To contact the reporter on this story: Ellen Milligan in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Eric Pfanner at email@example.com, Marthe FourcadeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Down 4% in early trading, Paul Summers takes a closer look at the latest numbers from FTSE 100 (INDEXFTSE:UKX) retailer Next plc (LON:NXT).
(Bloomberg Opinion) -- As Britain appears to be careering toward a no-deal Brexit, Next Plc Chief Executive Simon Wolfson is trying to reassure investors that the company should come out largely unscathed. That sounds overly optimistic, but Next has less to fear than most retailers.Wolfson, a Conservative Party peer and well-known Brexit supporter, says that as long as Britain’s ports operate effectively, Next’s operations and profits won’t be significantly impacted.That’s a big if. To be sure, Next doesn’t rely heavily on the Port of Dover, widely expected to face the biggest crunch if the U.K. crashes out of the European Union without a deal. But a disorderly Brexit on Oct. 31 could be a logistical nightmare for retailers because warehouses will be full of Christmas stock, leaving them little room to stockpile other items. A no-deal scenario could also make consumers reluctant to spend, especially if it results in higher inflation, as many expect.The good news is that Next won’t be suddenly facing higher tariffs. It estimates that the U.K. government’s temporary tariff regime that will come into place in the event of a no-deal Brexit will actually reduce the duties on most clothing, saving the company 25 million pounds ($31 million) in the first year. That’s a mere rounding error for a company the size of Next, so not exactly a major boon, but still a plus. With U.K. inflation in August at its lowest rate since 2016 and wages rising, consumers have more spending power. But Next is already facing disappointing sales at the start of the autumn season, which caused shares to fall as much as 5%. The company blamed the warm September weather rather than political turmoil. Even so, it’s a worry ahead of the peak trading season.There’s no doubt that Brexit uncertainty has weighed on consumers’ willingness to spend. British home-improvement retailer Kingfisher Plc said Wednesday that it had affected sales of higher-priced items like kitchens. Overall U.K. sales of household goods fell in August compared with the same period a year earlier. But even in a worst-case scenario of a no-deal, Next is better placed than most retailers. It believes the broader political uncertainty is less likely to impact smaller-ticket purchases such as clothing. And Next has outperformed many of its rivals in what has been a cut-throat retail market. It has developed a strong online business and isn’t saddled with too many stores with long leases or in the wrong places. It’s also been quietly developing Label, through which it sells third-party fashion brands.Next’s clothing lines are now hitting the right notes. After admitting it got too trendy a couple of years ago, the company appears to have found the right balance between style and predictability.The shares have risen almost 55% this year, far outperforming both competitors and the broader FTSE 100 Index. Next trades on a forward price earnings ratio of about 13 times, at a deserved premium to Marks & Spencer Group Plc, whose shares have slumped almost 15% this year after its pricey Ocado deal and subsequent rights issue. All retailers need to worry about the danger of a hard Brexit, but Next should emerge in better shape than most.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: Stephanie Baker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
* UK retail sales dip 0.2% in August, first fall since May * Online sales slide after Amazon Prime Day boost in July * No sign Brexit worries weighing heavily on consumer spending * Next blames warm weather for recent weak autumn clothing sales (Adds economist reaction) By David Milliken and Jonathan Cable LONDON, Sept 19 (Reuters) - British retail sales unexpectedly fell in August after shoppers bought less online than the month before, when an annual promotion by Amazon appeared to have encouraged them to splash out, official figures showed on Thursday. The figures gave little obvious sign that either the possibility of a no-deal Brexit on Oct. 31 or a fall in sterling over the summer had dealt a visible blow to consumer spending, which has solidly supported British growth in recent years.
* European stocks rise 0.4%, banks outperform * Fed's hawkish cut, value rotation boosts banks * BoE rate decision at 1100 GMT * Next slumps 5% on weak Q3 outlook * European steel stocks fall on US Steel warning Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://firstname.lastname@example.org NEED FOR M&A: EURO-ZONE HAS 5 TIMES MORE BANKS THAN CHINA (0922 GMT) Euro-zone has more banks than the world's most populous country China, but still there are no signs of consolidation in the sector due to complications in cross border M&A in Europe. Astounding numbers from JPMorgan: Euro-zone has 4,500 banks, one per 75,000 people, while China has 4,100 banks, one per 341,000 people.
European stocks rallied on Thursday as investors snapped up battered shares of eurozone banks after the U.S. Federal Reserve toned down expectations of further interest rate cuts. Shares of Italian and Spanish banks including Bankia SA , UBI Banca and Banco Sabadell were among the top gainers on the STOXX 600 after the Fed cut rates as expected on Wednesday, but signalled there would be a higher bar to further cut in borrowing costs. European banks, along with sectors such as miners and automakers, have gained in the recent weeks as investors rotated into cyclical sectors due to signs of easing U.S.-China trade tensions and assurances of support from major central banks.
* European stocks rise slightly, FTSE underperforms * BoE rate decision at 1100 GMT * Next slumps 5% on weak Q3 outlook * European steel stocks fall on US Steel warning Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. NEXT BRUISED (0731 GMT) Slightly higher open for Europe as strong gains in banking stocks offset weakness in steel makers. Mining sector is the worst performer across Europe as falling iron ore prices and a warning from U.S. Steel on weakening demand dent shares.
The boss of British clothing retailer Next has attributed a disappointing start to trading in the first few weeks of the autumn season to warm September weather rather than Brexit uncertainty. "That's not just a guess," Chief Executive Simon Wolfson told Reuters, pointing out that last week when the north of England and Scotland was significantly cooler than the south, the trading performance of the two regions diverged by 10%.
Retailer Next has made a "disappointing" start to autumn trading which it said was down to unusually warm weather in parts of Britain, rather than shoppers holding back on buying new clothes due to uncertainty over Brexit. While it did not give figures, Next said "the warm start to September has done much more to hinder sales than the political temperature" and it has not seen any evidence that shoppers are holding back on small ticket price items due to Britain's planned exit from the European Union next month. UK retailers, including supermarkets Asda and Morrisons and home improvement group Kingfisher, have said uncertainty around Brexit was affecting their customers.
For many, the main point of investing is to generate higher returns than the overall market. But even the best stock...