Next hit by Brexit and weather

16 September 2016
Next hit by Brexit and weather

Next have said that the current quarter is going to be their toughest this year, and that Brexit is going to hurt their sales.

That means they're going to be putting their prices up, if you're wondering what this means for you and your bank balance.

The clothing retailer have seen their profit margins shrinking, thanks to increased markdowns, according to a statement. The drop in Sterling isn't helping matters either.

As well as all this, the weather has been erratic, and Next - along with M&S, Primark, and H&M - have had a lot to contend with.

Customers have been changing their habits too, spending their money on leisure activities, rather than buying clothes and apparel.

Next's chief executive officer, Simon Wolfson, said that the warm weather in September has had a “massive" impact on sales.

As a result of all these things, Next's shares fell 5.1%.

"There has been some talk of a general retail bounce in July and while Next did enjoy very strong sales in July, this was driven by a much larger end-of-season sale," Wolfson said in the statement.

"It has been a challenging year so far, with economic and cyclical factors working against us, and it looks set to remain that way until mid-October at the earliest."

TOPICS:   High Street News

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