|Bid||6,582.00 x 0|
|Ask||6,588.00 x 0|
|Day's range||6,486.00 - 6,594.00|
|52-week range||3,970.00 - 6,976.00|
|Beta (3Y monthly)||0.63|
|PE ratio (TTM)||14.61|
|Earnings date||19 Sep 2019|
|Forward dividend & yield||1.68 (2.54%)|
|1y target est||5,337.47|
Royston Wild explains why investors should sell out of Next to buy shares in this monster yielder from the FTSE 100.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.British shops are being battered as the shift to e-commerce, intense competition and the fallout from Brexit cause catastrophic levels of store closures and job cuts.The country offers a case study in the troubles facing retail worldwide, and the collapse this week of the U.K. arm of baby-products chain Mothercare Plc is just the latest example. With fast-growing online rivals like Boohoo Group Plc and Amazon.com Inc. drawing shoppers, traditional chains were already struggling before a weaker pound began squeezing living standards and crimping sales further.Still, there are bright spots. Here are a few U.K. retailers who’ve managed to thrive during the apocalypse. We asked top executives to explain their success:NextThe 155-year-old clothing chain is that rare breed -- a bricks-and-mortar brand that has successfully transitioned to e-commerce. Next Plc’s online business had sales of almost 2 billion pounds ($2.6 billion) last year, and the company’s shares have surged 67% in 2019.The online business started in 1999 with a 7,000-pound investment in the website, which at the time was just a screen where customers plugged in item numbers from the catalogue. That head start on the web was key to Next’s growth, Chief Executive Officer Simon Wolfson said.The CEO also pointed to incremental measures such as opening combined clothing and home stores, and selling third-party brands like Levi’s and Gucci. This year Next installed Amazon lockers in hundreds of locations for customers to pick up deliveries, hoping they’ll browse while inside. Next has a 15-year plan to reduce rents and stores gradually to drive profit, rather than resorting to the drastic measures that have forced other chains to fire thousands.“The thing about retail is, it isn’t a business where you need to take big decisions,” Wolfson said in a September interview. “You take small decisions, try things and then maximize the opportunities they present.”PrimarkOwned by Associated British Foods Plc, the discount clothing chain defies the theory that retailers must shift to e-commerce to succeed. Primark doesn’t sell online because it doesn’t charge enough for its clothing to justify the cost, according to AB Foods Finance Director John Bason. So far, it hasn’t needed to: Primark has reported eight consecutive years of profit growth.Primark is one of the few British retailers still opening stores. That includes a massive 160,000-square-foot Primark spread over five floors, which opened this year in Birmingham, England.A main advantage is knowing the customer well. Store managers select products on their computers each morning and determine how much they need for the next day. It’s the same model that Inditex SA’s Zara chain follows and allows for a nimbler response to trends.“We encourage customer intimacy,” Bason said. “Having an eye for the hottest trends is vital in the buying department, and that is encouraged.”Hotel ChocolatMaking shopping an experience lies at the core of Hotel Chocolat Group Plc’s strategy. The chocolate seller began with an online business in the 1990s, then decided to open stores in 2003 to try to get closer to customers. Hotel Chocolat has reported at least double-digit growth in revenue and profit since going public in 2016, and the shares have jumped 69% this year.More than two-thirds of sales now come from stores. Hotel Chocolat focuses on product innovation and events to lure shoppers, such as the evening chocolate masterclasses, or “lock-ins,” offered at 60 different sites.Co-founder and CEO Angus Thirlwell said his risky decision to buy a cocoa plantation on the island of St. Lucia made a difference by lending an authenticity to the brand. The plantation’s Boucan hotel has helped introduce U.S. guests to Hotel Chocolat by offering chocolate facials and chocolate-infused food.“There’s a lot of brands that are just content to sit back on their laurels and not really aim to excite and entertain the customer, and we’re very aware that we’re in the entertainment business,” Thirlwell said. “We have to put on a show and make them feel different after they’ve entered a Hotel Chocolat.”GreggsSince opening its first shop in 1951, Greggs Plc has stayed true to its mission: to make cheap pastries. It’s been growing steadily, but business boomed this year after the bakery chain launched a vegan sausage roll that became a hit on social media. First-half sales rose almost 15%, and Greggs shares have climbed 41% in 2019.Like online-delivery services, Greggs is benefiting from changing eating habits as time-pressed Britons cook less and grab food on the go. Greggs has been transforming itself for the last six years into a takeout business focused on airports, train stations and business areas after previously relying on the high street -- the British term for the main shopping district. It’s also partnered with Just Eat Plc and Deliveroo, and extended a “click & collect” pilot to seven U.K. cities.“There’s all sorts of reasons we do very well, not least of which because of value for money,” CEO Roger Whiteside said.JoulesJoules Group Plc peddles British country chic. Think Wellington boots and waterproof jackets. The company started 30 years ago, when founder Tom Joule began selling clothing from a stand at a country show in Leicestershire. He then set out to fill a gap in the market for classic British pieces with a bit of sartorial whimsy, such as a mismatched button or printed lining.Today Joules has 125 stores across the U.K. and Ireland and has added housewares to the mix. It opened seven shops and closed only one in the fiscal year ended in May, and reported a gain of 17% in revenue and 19% in pretax profit.Joules has focused on market towns and coastal vacation hot spots such as Cornwall and has branched out into travel stores at London rail hubs. It aims to keep store leases as short as possible, so it can relocate easily if necessary, Chief Financial Officer Marc Dench said.The retailer has benefited from limiting spending on its shops, “and probably, most importantly, making sure our stores are where our customers are,” he said.To contact the reporters on this story: Ellen Milligan in London at email@example.com;Greg Ritchie in London at firstname.lastname@example.org;Rebecca Smith in London at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, Anne PollakFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A rally in pharmaceutical stocks led by industry giants GlaxoSmithKline and AstraZeneca helped the FTSE 100 outshine most global peers on Wednesday while investors waited for the outcome of the U.S. Federal Reserve's policy meeting. The FTSE 100 reversed early losses to close up 0.3%, with the pharma sub-index scaling an all-time high, up 2.5% after GSK again upgraded its 2019 targets. Moves on both indexes were however subdued with investors waiting for the Fed to announce its policy decision.
A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.
It said full price sales including interest income rose 2.0% in its third quarter to Oct. 26, slightly ahead of a forecast given in September. The group said it believed that strong sales in July pulled forward sales from August. "We believe the improved sales growth in October recouped some of the lost sales in September and we do not expect sales growth for the rest of the year to be as strong as October," it added.
British clothing retailer Next kept its profit guidance for the full 2019-20 year on Wednesday, as it reported third quarter sales growth slightly ahead of guidance given in September. Next, which trades from about 500 stores in the UK and Ireland, about 200 stores in 40 countries overseas and its Directory online business, said full price sales including interest income rose 2.0% in its third quarter to Oct. 26. The group said it believed that strong sales in July pulled forward sales from August.
Shares in London's UK-oriented businesses, such as housebuilders and retailers, could rocket to record highs if parliament approves the government's Brexit deal, investors say. British companies that earn most of their revenues at home have been shunned by investors more or less since the 2016 Brexit referendum, as more than three years of uncertainty damaged Britain's economic prospects. Sealing the deal now, however, could send the second-tier FTSE 250 index, a closely watched barometer of Brexit risk, surging around 5%, an informal poll of analysts by Reuters showed.
* Q3 retail sales growth slows to 3.1% from Q2 3.6% * Spending rising at weakest pace since Q2 2016 * Department stores report biggest fall in sales since 2009 (Adds reaction) By David Milliken and Jonathan Cable LONDON, Oct 17 (Reuters) - British shoppers grew more cautious about their spending in the three months to September despite rising wages, official figures showed on Thursday, raising concerns about the health of the economy in the run-up to Brexit. Consumer spending has been the biggest driver of British economic growth since June 2016's referendum to leave the European Union, but there have been increasing signs that this is starting to soften. Looking at the third quarter as a whole, which strips out monthly volatility, quarterly sales growth held steady at 0.6% while the annual pace of expansion dropped to 3.1% from 3.6% in the second quarter, the weakest since the late 2018.
The chief executive of Next has sold more than 10 million pounds ($12.7 million) worth of shares in the British clothing retailer to finance an investment in a private venture outside the retail industry, the company said on Tuesday. Simon Wolfson sold 153,000 shares for 66.05 pounds each, netting 10.12 million pounds, according to a stock exchange notification. Wolfson joined Next in 1991 and has been CEO since 2001.
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;
Looking to get rich on the FTSE 100? Royston Wild looks at shares that could make, or break, your Stocks and Shares ISA.
Why buy risky Next when there are so many other FTSE 100 shares to choose from? I'd rather load up on this big-yielding blue-chip for my retirement fund.
* 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://email@example.com 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://firstname.lastname@example.org AFTER FED, TIME TO TAKE PROFITS?