The British clothing group Next recorded a drop in the London stock exchange on Thursday morning. Previously, despite an increase in sales in the half -year report, the company had warned of a weakening of British economic growth.
The group, the results of which, due to its importance for the British economy, are often viewed by analysts: according to a message, “at best weakness” awaits “at best” in the United Kingdom. The annual forecast remains unchanged.
Next does not assume that the British economy is “on the edge of the abyss”. Nevertheless, the company sees itself impaired by various factors. This includes the slow development of the labor market, too strict regulations, excessive government spending and increasing tax pressure.
According to official figures, growth in the United Kingdom stagnated in July. The Labor government is under the pressure of the financial markets to compensate for the budget while fighting to boost the economy.
After the unpopular increase in employers’ contributions that came into force in April, the British speculates: Inside for months on further tax increases in the next budget template on November 26.
The stock of the clothing group fell by 4.75 percent to 114.30 pence on Thursday shortly before 9:00 a.m. In doing so, she recorded the strongest decline in the FTSE 100, the most important index of the London Stock Exchange, which was otherwise in plus.
Nevertheless, Next published positive results on Thursday. The net profit rose by 17.5 percent to £ 379.5 million (around 438 million euros). In the first six months of the postponed financial year, which ended in July, sales climbed by almost ten percent.
“In the first half of the year, Next clearly exceeded its original sales forecasts,” summarizes Aarin Chiekrie, analyst at Hargreaves Lansdown. This is due to favorable weather conditions, the difficulties of competitor Marks & Spencer and an impressive international growth.
Despite the difficult situation of the British economy, the group is “well positioned to continue to dominate the market,” said Chiekrie.
This article was used with digital tools translated.
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