Next PLC (LSE:NXT) will get the new year kicked off when it releases its fourth-quarter trading update with all eyes on the outlook.
One of the biggest players in retail, Next hasn’t been immune to the macro-factors in 2022 that have impacted the sector.
Shares are down 29% in the year to date, and the FTSE 100 company even issued a profit warning in September.
Any indication on outlook would therefore be welcomed by investors.
Shareholders and investors will be also looking out for some information on the retailer's Christmas period, often the busiest time of the year.
Analysts at investment bank Stifel believe that “Next can thrive in these difficult times.”
Analysts believe its multi-channel, multi-brand offer and its profit margin and cash-flow discipline will allow it to thrive.
Additionally, Stifel believes Next will trade through a recession as well as any, despite much of its 8mln customer base being hit hard due to higher interest and mortgage rates.
“Next has shown in the last 2008 recession how it not only bounced back in 2009 but had quadrupled by 2015, outperforming the FTSE 350 retail index by over 170% from 2010-2015,” the investment bank said.
Stifel also notes that Next has never been a company to chase growth at the expense of profit margins, making it more resilient than most retailers to withstand external shocks.