SHARE OF THE WEEK: Next results to provide insight into its resilience against High Street’s woes

Next’s third-quarter results on Wednesday will provide some insight into the company’s resilience to the High Street’s woes.

Simon Wolfson’s chain has reported higher sales this year despite a consumer spending squeeze weighing heavily on its rivals.

Next has teamed up with high street stalwart Marks & Spencer to promote the return of shoppers to city centers.

It comes as online fashion brands Asos and Boohoo struggle to entice consumers amid a cost-of-living crisis.

Next has also been on a shopping spree to snap up beleaguered retailers, acquiring the FatFace brand for £115.2 million.

Next, which has long been seen as a paragon of the High Street and sells clothing lines from celebrities such as Myleene Klass, saw sales rise 5.4 percent to £2.6 billion in the first six months of the year, while profits was 4.8 percent higher. for £420 million. It expects £875 million for the full year, an increase of £30 million on its previous forecast of £845 million. Last year it earned £870.4 million.

At the latest update, Wolfson upgraded earnings estimates for the third time in four months, sending shares to a 20-month high. Investors will be hoping for more optimism next week as Wolfson’s thoughts on the economy are often followed.

The company may also provide an update on the vision for its Total Platform, which provides a service for third-party retailers to use Next’s online infrastructure.

Aarin Chiekrie, equities analyst at Hargreaves Lansdown, said Next’s sales prospects are also something to keep an eye on. “If the group can perform well here it will be a clear sign to the market that Next remains a top dog in the UK retail sector,” he said.