Due to climate, it affects the retailer. But with 6% sales in the third quarter better than previous year, it's still not over for the brand
There is no need for a chief executive office of Next to emphasize that the weather has affected the sales performance of Next.
Lord Wolfson's discrete comment on the current struggle brought by bipolar warm weather, nevertheless affected the Next's price of shares by 4%. The public might thought that the retailer has sun-resistant personality?
As it is expected, the brand did not that much. Their sales figures in the third quarter are up by 6% than the previous year's figures, versus the brand's projected rate of 10%. The business will not get everything back once the weather has changed, but it will gradually happen. In the meantime, the projected annual profit is still unchanged, regardless of the weather change that will happen along the way. It will not be such a big deal for them.
It will be tougher, though, to be assured that September will just be normal than any other month. Not all clothing retail shops have Next's composed attitude when it comes to sales performance. Even other brands like Marks & Spencer's is having their 50% discount sale signage all over the shop, and according to the brand it is just their annual mid year sale.
However, the M&S price of shares has dropped by 2.5%, has again turned within pennies of 400p, where it has not been there for more than 15 months. The 400p amount, being the stage at which Sir Philip Green state his bid ten years ago is totemic. Its resurface exhibits new danger for chief executive Mark Bolland who have drifted the corner few months ago when 500p share price was seen and the attractive new webpage finally was discovered.
Bolland has been running the business for four years-far enough too blame a short Indian Summer if Marks & Spencer is again losing market share in apparel. Compared to Next, the sales still good even when the market is low.
