The Next share price surged by 8 percent on Thursday despite the clothing retail posting its first annual profit fall in eight years and a gloomy outlook from the retailer. Analysts have attempted to explain the phenomenon, drawing upon Next’s strong balance sheet and feeling that the market didn’t feel Next’s performance was as bad as expected:
“Not a pretty set of figures from Next but no worse than expected after warning on profits in January. Following that dire Christmas trading update investors were prepared for this and the retailer remains extremely cautious about the year ahead,” said Neil Wilson, senior market analyst at ETX Capital, adding that investors seem to be “reassured that it’s taking steps to turn things around with a focus on core products.”
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