Miner Company
Citi warns dollar strength is the real threat for UK fashion retailers as Middle East volatility hits sector
Citi has screened its retail coverage for Middle East exposure following this week's geopolitical escalation and identified Associated British Foods PLC (LSE:ABF) and Next PLC (LSE:NXT) as facing the sharpest gross margin headwinds in its UK universe, driven by a strengthening dollar rather than direct regional sales exposure. Both companies source heavily in dollar-linked currencies, meaning that every leg higher in the greenback compresses the gap between what they pay for stock and what they
Citi has screened its retail coverage for Middle East exposure following this week's geopolitical escalation and identified Associated British Foods PLC (LSE:ABF) and Next PLC (LSE:NXT) as facing the sharpest gross margin headwinds in its UK universe, driven by a strengthening dollar rather than direct regional sales exposure. Both companies source heavily in dollar-linked currencies, meaning that every leg higher in the greenback compresses the gap between what they pay for stock and what they sell it for, a dynamic that becomes more acute as oil-driven inflation keeps the dollar elevated.