The hot streak for Next continued today after the retailer racked up £1 billion profit and upgraded guidance.
The latest bounce for its shares came in another session of volatility after Donald Trump slapped tariffs on US car imports.
The move caused the shares of global car makers including Aston Martin Lagonda to fall sharply.
FTSE 100 Live Thursday
- Next ups guidance after £1bn profit
- Car makers hit by US tariffs
- Analysts praise “next-level” Next
Market update: Next surges amid tariffs gloom, FTSE 100 down 0.7%
10:10 , Graeme EvansA £1 billion profit by Next today illuminated an otherwise poor FTSE 100 session as stock market volatility returned on the back of more US tariffs.
Donald Trump’s decision to place 25% levies on imported vehicles heightened fears of a global trade war and sent the shares of leading car makers sharply lower.
Tokyo-listed Mazda slid 6%, while the global supply chain impact caused a fall of similar scale for General Motors in dealings after last night’s US closing bell.
The British automobile industry exported some £6.4 billion worth of cars to the US in 2023, nearly one fifth of all UK’s vehicle exports.
The developments heaped more pressure on FTSE 250-listed Aston Martin Lagonda, which dropped 6% or 4.6p to a fresh all-time low of 69p.
The FTSE 100 index slipped 0.7% or 60.38 points to 8629.21, in line with the weaker performances of benchmarks in Paris and Frankfurt.
This follows last night’s poor session on Wall Street, with Tesla and Nvidia both down 6% and the tech-heavy Nasdaq off 2% to halt a recent improvement.
European stock market jitters were also fuelled by today’s H&M first quarter results, which came in below expectations due to a squeeze on margins.
The reception was very different for Next, which broke the £1 billion profit milestone for the first time and upgraded guidance after a strong start to the new financial year.
The performance, which has been driven by strong online and international trading, reignited Next shares after a muted start to the year - up 6% or 649p to 10,635p.
UBS highlighted Next’s safe haven appeal as one of its top picks in European retail, adding that in the choppy consumer sector the company is unique by entering the year with strong momentum and first-half weighted profit growth.
Peel Hunt said following the results: “There are no big targets or proclamations; instead, Next remains relentlessly focused on the consumer and driving return on capital employed.” It views the company as a key long-term sector holding.
The read across from Next’s strong recent trading meant Marks & Spencer shares rallied 9p to 345.7p. Primark owner AB Foods cheered 10.5p to 1918.5p.
The FTSE 100 fallers board included several ex-dividend stocks, with M&G down 7% or 14.3p to 203.4p, Taylor Wimpey 4.9p lower at 108.15p and Segro off 22p to 681p.
Weaker global sentiment impacted GKN Aerospace business Melrose Industries as its shares fell 13.4p to 513.6p, while Barclays dropped 6.4p to 302.85p.
Low-cost airline easyJet fell 3.5p to 477.1p after Deutsche Bank removed its Buy stance and cut its price target from 715p to 600p as part of a sector-wide review.
It said: “Whilst signals remain mixed we take the view that near term GDP risks for the US and Europe are skewed to the downside.
“European transport company earnings are driven by GDP so it should not be surprising that we see the need to cut forecasts for a number of our companies.”
Downgrade hits easyJet shares, Melrose falls 3%
08:50 , Graeme EvansThe FTSE 100-listed shares of easyJet are down 7p to 473.6p after Deutsche Bank removed its Buy stance on the low-cost airline.
The bank also cut its price target from 715p to 600p as part of a sector-wide review.
It said: “Whilst signals remain mixed we take the view that near term GDP risks for the US and Europe are skewed to the downside.
“European transport company earnings are driven by GDP so it should not be surprising that we see the need to cut forecasts for a number of our companies.”
The FTSE 100 fallers board also included several ex-dividend stocks, with M&G down 14.4p to 203.3p, Taylor Wimpey 4.5p lower at 108.5p and Segro off 21.2p to 681.8p.
Other blue-chip fallers included the GKN Aerospace business Melrose Industries, which weakened 3% or 17.6p to 509.4p.
Next shares jump as retailer continues hot streak
08:36 , Graeme EvansNext shares are trading back in record territory after a rise of 8% or 819p to 10,805p in the wake of today’s £1 billion profit and upgraded guidance.
Richard Hunter, head of markets at Interactive Investor, said: “Yet another set of next-level numbers has underlined the group’s unparalleled understanding of the market in which it operates and its ability to capitalise on new opportunities.”
Hargreaves Lansdown analyst Aarin Chiekrie added: “Next continues to deliver for investors, with yet another profit upgrade continuing its hot streak.
“In 2024, online sales remained the driving force behind performance, helping to offset small declines in retail stores which have come under a bit of pressure given the structural decline of the high street.
“Overseas sales continue to grow at an eye-watering pace, up at double-digit rates. Given the untapped size of foreign markets, there’s a big opportunity ahead if Next can execute its expansion plans well.”
Next shares jump 6% in weaker FTSE 100, Aston Martin down 7%
08:16 , Graeme EvansNext shares have risen 6% or 604p to 10,590p after the retailer lifted guidance alongside annual results showing a £1 billion profit.
Sentiment towards Marks & Spencer also benefited from the upgrade as its shares opened 4% or 13.1p higher at 349.8p.
The FTSE 100 index fell 53.81 points to 8635.78, reflecting heightened volatility ahead of next week’s introduction of new US tariffs.
In the FTSE 250 index, Aston Martin Lagonda joined the global car industry sell-off as its shares slid 7% or 5.15p to 68.45p.
Mazda shares down 6% amid US auto tariffs
07:55 , Graeme EvansAsia-listed car stocks have fallen sharply on the back of Donald Trump’s announcement of 25% tariffs on imported vehicles from next week.
Tokyo-listed Toyota shares fell 2%, while Mazda Motor Corp and Subaru fell 6% and 5% respectively. General Motors lost 6% and Ford fell 5% In dealings after the US closing bell.
Tariffs on auto parts are also set to take effect no later than May 3.
IG Index expects the FTSE 100 index to open 42 points lower, with the Nasdaq seen slightly lower after yesterday’s 2% reverse.
The Magnificent Seven had a particularly bad session as Tesla and Nvidia both fell 6%.
Tariffs set to deal fresh blow to UK car industry
07:42 , Graeme EvansBritain’s car industry has hit out at Donald Trump’s decision to put 25% tariffs on imported vehicles, which has heightened fears of a global trade war.
The British automobile industry exported some £6.4 billion worth of cars to the US in 2023 - nearly one fifth of all UK’s vehicle exports.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, warned the move risks hurting both UK and US manufacturers and consumers.
He added: “Rather than imposing new tariffs, we should be creating opportunities for both British and American manufacturers as part of a mutually beneficial relationship - benefiting consumers and creating jobs and growth on both sides of the Atlantic.”
Next profits hit £1 billion, lifts guidance
07:12 , Graeme EvansNext annual profits today broke £1 billion for the first time after a 10.1% increase in the financial year to January.
It expects further growth in the current year after today’s results showed that trading in the first eight weeks of the period has been ahead of expectations.
Next lifted profit guidance by £20 million to £1.07 billion, an increase of 5.4% on today’s landmark figure of £1.01 billion.
Sales rose 8.2% to £6.3 billion in 2024/25, with full-price sales up 5.8%.
The company now estimates sales growth of 5% for the first half of the year and full-price sales up 6.5%, compared with previous estimates of 3.5% in both cases.
Chief executive Simon Wolfson said it would be wrong to view the company differently because it has passed such a milestone.
He told investors: “Reaching any level of profit cannot be used as an excuse for being less demanding in our approach to running the business.
“We can be no less rigorous in the control of costs and maintenance of margins, any less demanding in terms of return on capital or less disciplined in the way we allocate capital.”
Rather than profit, he said the company has always been on the delivery of sustainable growth in earnings per share. This has seen a twenty-nine fold increase, from 22p to 636p over the last thirty years.
FTSE 100 seen lower after Wall Street reverse
07:01 , Graeme EvansThe FTSE 100 index is set to open lower following the resumption of heavy selling of US stocks.
The S&P 500 index fell 1.1%, the Nasdaq Composite reversed 2% and the Dow Jones Industrial Average dropped 0.3%.
The selling came as Barclays cut its year-end target for the S&P 500 index to 5900 from 6600 and as Donald Trump prepared to announce 25% tariffs on car imports.
The shares of Ford and General Motors were down by 5% and 6% in dealings after the closing bell.
The FTSE 100 finished 0.3% higher at 8689.59 but is expected to open today’s session about 37 points lower.
