Broker snap: Difficult consumer outlook at Next

4th May 2011 10:22

Despite a strong quarter for retailer Next, Matrix keeps a 'reduce' rating on the stock, expecting things to get a bit tougher during the rest of the year.Total sales for the period excluding VAT were up by 5.2% from the same period the previous year, ahead of guidance given in March of between -0.5% and +2.5%, boosted by the warn weather and the Royal Wedding holiday, Next said.Matrix analyst Tom Gadsby notes that the group has now upgraded its full-year sales target to a new range of between +1% and +4%.However, "the outlook remains difficult for the remainder of the year...in Next's view, with public-sector job cuts and inflation still restraining consumer spending," said Gadsby.The target price is left at 1,910p.---BC