Proactive Investors - Next PLC (LON:NXT), the clothing retailer, should impress in its second-quarter update if momentum has continued, but updates on the potential sale of its fashion arm Reiss may be the focus for investors.
Wanting to sell the affordable luxury brand for around £500mln, the group have been working with brokers since last month, according to reports.
In June it provided investors with a surprise update after a better-than-expected sales period in the first seven weeks of the second quarter.
Good weather and an increase in the disposable incomes of customers helped boost revenues by 9.3% year-on-year and caused the retailer to lift its full-year sales and profit guidance.
Whether the strong momentum has been maintained throughout the quarter will be key for investors, especially as the rate of borrowing increases due to interest rate hikes, which Jefferies reckons could in turn affect customer spending.
As retail outlets up and down Britain shut for good, news of site openings or closures could be an important indicator of the health of the retailer – if Next has purchased a significant number of new units it could be positioned to grow ahead of the rest of the market.
Shares in Next have performed well throughout 2023, up close to 19%, with the stock currently trading at just above the 6,000p mark.