Brewin Dolphin worried about sustainability of growth at Next

29th Oct 2014 11:39

Unfortunately, fashion retailer Next is not due to hold a press conference call following Wednesday's disappointing figures, writes Brewin Dolphin's Nicla di Palma.The company reported sales for the third quarter which were higher by 5.4%, well below the 10% which management had been expecting. Executives at the firm blamed "unseasonably warm weather" for the results.Indeed, people are not in the mood to buy winter clothes. That observation is consistent with the general commentary coming out of the retail sector. However, analysts at the broker are concerned that the company cannot continue to grow at double digit rates given the size which it has already reached - with a market a share of 7.5% in the UK.Smaller more nimbler players such as Ted Baker, on the other hand, registered strong growth despite the spell of warm weather.