The Leicestershire retailer says many factories price goods in dollars, so costs are likely to rise
Next, which is widely seen as one of the most steady High Street performers, said that it had enjoyed a stronger than expected first half of the year with full price sales up 12.4% in comparison with last year.
In its statement, Next also said that weakness in the pound - which touched an all-time low against the dollar earlier this week - could persist into 2023 and would "serve to inflate selling prices, particularly in the second half of the year".Richard Hunter, head of markets at Interactive Investor, said that a downgrade of profits by Next was "a rare and unwelcome development, even if it is largely understandable in the circumstances".
The Swedish fashion giant also said it would need to make cost savings after winding down its business in Russia. "We have chosen not to fully compensate for the increased costs, which is reflected in the gross margin," she told analysts.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Two thousand dockers go on strike at Felixstowe portThe falling pound may be wreaking havoc on the markets in the City - but it's also piling extra pressure on those who say they're already struggling to pay their bills.
Read more »
'The winter could be bleak indeed' - government's 'ideology-driven' budget statement trashed by Leeds economistA leading economist at Leeds University has warned YEP readers should be “very concerned” about the falling pound, as money markets continue to react to Chancellor Kwasi Kwarteng’s controversial budget statement.
Read more »
Convicted fraudster targets speeding “Tour de France guys” with megaphone in Central Park; When Cav and Wiggo met Lance and Jan; Priest apologises for leading Mass in cycling kit; Van Vleuten reconsiders retirement; Remco's home + more on the live blogOn today’s live blog: Convicted New York con man takes on “Tour de France guys” in “$500 plastic pants” When Cav and Wiggo met Lance and Jan: Podcast panel divides opinion Italian priest apologises for celebrating Mass… in cycling kit + more cycling
Read more »
Convicted fraudster targets speeding “Tour de France guys” with megaphone in Central Park; Van Vleuten considers postponing retirement; Remco’s homecoming + more on the live blogOn the live blog at lunch: Convicted con man trolls “Tour de France” cyclists in Central Park with megaphone and speed camera What will the world champions do next? Remco plans homecoming party, while Van Vleuten reconsiders 2023 retirement cycling
Read more »