Dan Coatsworth, head of markets at AJ Bell, said: “If there are any companies better at navigating the ins and outs of being a public company than Next, they’re certainly few and far between.
“The outlook for the UK retail sector may look decidedly gloomy but Next is a beacon of light within that beleaguered industry.
“Impressively, Next says it can absorb the additional costs it has already identified thanks to the conflict in the Middle East without needing to downgrade its guidance for the current financial year.
“For Next, dealing with the current situation isn’t just a matter of the knock-on effect on energy and freight costs, as the company has broadened its horizons internationally.
“Reassuringly, Next feels confident enough to sanction further generous returns to shareholders – outlined with the usual transparency it displays on capital allocation.
“The skills it has built up in retail logistics allows sales of third-party brands to make an increasing contribution and, acting from a position of strength, Next has acquired several complementary brands which further bolster its offering.
“The coming period may be tricky but Next has shown time and again that it can navigate choppy waters and come out the other side stronger.”
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