Investors in Next PLC (LSE:NXT) will be queuing up to get eyes on the retailer's fourth-quarter trading update, and, crucially on the performance during the key Christmas and Boxing Day trading period.
Next is slated to report to the market on Thursday.
One of the biggest players in retail, Next wasn’t been immune to the negative macroeconomics that has impacted the sector.
The shares were down close to 30% in 2022, and the FTSE 100 constituent issued a profit warning in September.
Understandably, any indication on outlook would therefore be welcomed by investors.
Analysts at Stifel reckon Next can “thrive in difficult times”, with its analyst claiming Next’s multi-channel, multi-brand offering, and, profit margin and cash-flow discipline can allow it to outperform.
“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's analysts said.
Stifel analysts also noted 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.
Week ahead, commencing 02.01.2023
Monday
Market closed for bank holiday.
Tuesday
Trading updates: Darktrace PLC (LSE:DARK)
Economic announcements: PMI Manufacturing (US), Construction Spending (US), Auto Sales (US), PMI Manufacturing (UK)
Wednesday
Economic announcements: MBA Mortgage Applications (US), ISM Manufacturing (US), ISM Prices Paid (US), Crude Oil Inventories (US), FOMC Interest Rate Minutes (US), BRC Shop Price Index (UK), Consumer Credit (UK), M4 Money Supply (UK), Mortgage Approvals (UK)
Thursday
Trading announcements: M&M European Value Retail SA, Greggs PLC (LSE:GRG), Next PLC (LSE:NXT)
Economic announcements: Continuing Claims (US), Initial Jobless Claims (US), PMI Composite (US), PMI Services (US), PMI Composite (UK), PMI Construction (UK)
Friday
AGMs: Gunsynd PLC (LSE:GUN)
Economic announcements: Non-Farm Payrolls (US), Unemployment Rate (US), Factory Orders (US), ISM Prices Paid (US), ISM Services (US), Halifax House Price Index (UK), PMI Construction (UK)
US:
Wednesday: Constellation Brands (NYSE:STZ)
Thursday: Walgreens Boots Alliance