Fashion, floods and groceries

Tuesday 5 January 2016 

Blue-chip stocks recouped some of yesterday's heavy losses despite a poor overnight performance in the US.
“Next (LSE:NXT) is feeling a cold chill from investors after the fashion group blamed warm weather for disappointing winter sales,” says AJ Bell Investment Director Russ Mould.

“Investors were looking to see whether sales in the high street and online were healthy and were disappointed on both counts. Store sales fell in the run up to Christmas and while the online Next Directory fared better with sales rising by 2%, this was short of expectations with the group admitting that difficult conditions had been compounded by poor stock availability. Next now expects annual pre-tax profits of around £817m, which is at the lower end of its previous guidance.

“Carr’s (LSE:CARR) shares were down in early trading. The group continues to trade in line with forecasts despite enormous challenges due to floods following Storm Desmond. The group’s agriculture business has been directly affected with one of three feed mills being flooded but direct financial impact on the Group is covered by insurance.

“Supermarket giant Tesco (LSE:TSCO) was top of the blue-chip board in early trading following a broker upgrade with miners Glencore (LSE:GLEN), Anglo American (LSE:AAL) and BHP Billiton (LSE:BLT) in close attendance.”

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