FTSE 100 movers: Next surges on guidance upgrade

(Sharecast News) - London's FTSE 100 was up 0.6% at 9,750.84 in afternoon trade on Wednesday. Next surged to the top of the index as the clothing and homeware retailer lifted its guidance for full-year pre-tax profit by £30m to £1.14bn and said full-price sales in the fourth quarter were set to grow 7%, up from previous guidance of 4.5%.

Russ Mould, investment director at AJ Bell, said: "It is hard to think of a company which has mastered the art of being on the stock market better than Next. The company consistently pitches its guidance conservatively allowing it to then surpass expectations when it comes time to report on trading.

"Today's third-quarter update is no exception as sales come in comfortably ahead of expectations once again and, given Next's habit of under promising and over delivering, it is striking to see another upgrade to full-year profit guidance.

"The company is seeing really impressive growth in sales of third-party brands on its platform and is making meaningful progress with its nascent international business.

"The core brand is also demonstrating resilience in what remains a tricky consumer backdrop, with competitors struggling to match Next's mastery of the basics of retail.

"It gets the right products in front of customers, whether that's in-store or online, at an attractive enough price point to keep the tills ringing and uses its store network extremely effectively to help facilitate online sales.

"Next also offers plenty of transparency over how it makes decisions on what to do with its surplus cash and how it goes about returning this to shareholders. Given the shares are trading at record levels it's making the call that a special dividend makes more sense than purchasing its own stock.

"This considered stance is refreshing given many firms will happily launch share buybacks when their shares are making all-time highs."

GSK was also a high riser as the pharma giant lifted its 2025 sales and earnings expectations following better-than-expected third-quarter results.

The group said it now expects turnover growth of 6% to 7%, having previously guided towards the top end of a range of 3% to 5%. Core operating profit growth was seen at between 9% and 11%, up from previous guidance that it would be towards the top end of a range of 6% to 8%.

GSK also said it now expects earnings per share growth of 10% to 12%, having previously said it would be towards the top end of the range of 6% to 8%.

Glencore rose after a third-quarter production update. Miners more generally were in the black, with Rio Tinto, Anglo American and Antofagasta also up

Smurfit Westrock tumbled as it cuts its full-year profit forecast.

FTSE 100 - Risers

Next (NXT) 14,500.00p 8.17% GSK (GSK) 1,756.50p 6.84% Glencore (GLEN) 374.60p 6.59% Fresnillo (FRES) 2,278.00p 6.05% Beazley (BEZ) 934.50p 3.20% Hikma Pharmaceuticals (HIK) 1,825.00p 2.76% Rio Tinto (RIO) 5,516.00p 2.00% Metlen Energy & Metals (MTLN) 42.45p 1.92% Anglo American (AAL) 2,943.00p 1.80% Antofagasta (ANTO) 2,815.00p 1.55%

FTSE 100 - Fallers

Smurfit Westrock (DI) (SWR) 2,987.00p -8.37% Babcock International Group (BAB) 1,211.00p -2.50% Croda International (CRDA) 2,885.00p -2.04% The Sage Group (SGE) 1,152.00p -1.92% Relx plc (REL) 3,433.00p -1.86% Compass Group (CPG) 2,550.00p -1.85% Coca-Cola Europacific Partners (DI) (CCEP) 6,840.00p -1.72% Vodafone Group (VOD) 91.58p -1.53% Rentokil Initial (RTO) 425.10p -1.51% Experian (EXPN) 3,583.00p -1.43%