Next (LON:NXT) has inked a product licence deal with Ted Baker (LON:TED), replacing Debenhams, whose deal with the smaller London-listed group expires in February next year. The update comes after the FTSE 100 retailer recently updated investors on its performance, lifting its full-year sales and profit guidance.
Next’s share price has been little changed in London this morning, having inched 0.07 percent higher to 5,644.00p as of 09:56 BST. The stock is underperforming the broader market, with the benchmark FTSE 100 index standing 0.75 percent higher at 7,120.28 points following a delayed opening on the London Stock Exchange. The group’s shares have added about two percent to their value over the past year, as compared with about a 5.8-percent fall in the Footsie.
Ted Baker deal
Ted Baker announced in a statement this morning that it had entered into a product licence agreement with Next. Under the deal, which will run for an initial five-year period, the FTSE 100 retailer will create and sell its smaller London-listed peer’s childrenswear products spanning baby, boys’ and girls’ clothing, shoes and accessories in collaboration with the creative team at Ted Baker.
The new collections will launch in Spring 2020 and will be sold through Next’s retail channels and wholesale relationships as well as through Ted Baker’s websites.
“We are thrilled to have the opportunity to help build and develop the Ted Baker children’s business across the globe,” Next’s chief executive Simon Wolfson commented in the statement.
“It (the new agreement) brings in a stronger partner with global sourcing and distribution capabilities that should support an acceleration of growth over time,” Liberum analysts said, as quoted by Reuters.
Analysts on Next
The 18 analysts offering 12-month targets for the Next share price for the Financial Times have a median target of 5,750.00p, with a high estimate of 7,100.00p and a low estimate of 4,400.00p. As of August 10, the consensus forecast amongst 23 polled investment analysts covering the blue-chip retailer advises investors to hold their position in the company.