Executive Summary

• British fashion retailer Next reported that Next Brand full-price sales were down 0.4% for 4Q17. This was well below analysts’ expectations.
• Following the 4Q17 trading results, the company has lowered its central guidance for FY17 sales, profit before tax (PBT) and earnings per share (EPS). Next now forecasts total full-price sales growth for the Next Brand will be down 1.0%, PBT down 3.6% year over year and EPS down 0.6%.
• Next expects FY18 to be another challenging year. Following the devaluation of the pound, the company expects to increase product prices by up to 5%, which management expects to depress sales revenue by approximately 0.5%.