Next: What the analysts say

Simon Chinn, Conlumino

While last month may have been a complete wash out and further dampened sales of its Spring/Summer collection, the outlook for the quarter ahead looks more encouraging with the upcoming Jubilee and summer sporting events likely to provide some boost to its seasonal ranges. As Next is one of the sponsors of the Olympics and is selling official merchandise for the games, it will be counting on that patriotic spend to help boost retail sales in the next quarter.

Singer, Matthew McEachran

Directory customer balancaes have risen with the growth in credit based sales, a trend we observe at both N Brown and Findel too, which will serve to increase financial services income. At the same time, bad debt remains at historically low levels, consistent with their comments at the prelims in March.

Independent analyst Nick Bubb

Having warned back in March that the comps in Q1 were unusually tough, given the very strong April a year ago, the market had been softened up for some below-par sales figures, but the outcome is  at the top of the range. With softer comps ahead in Q2, Next have not changed their full-year guidance and actually seem more confident about £560m-£610m range set at the time of the finals in March and it’s a brave man who wouldn’t be towards the top of that range.

David Jeary, Investec

The Q1 period is against a significantly tougher comp than Q2, due to the good weather and Royal Wedding effect last April. Next has a proven strategy, strong management team, consistent financial performance, industry-leading multichannel capabilities and international growth prospects.