Key facts
- Next has raised its full-year pre-tax profit expectation to £1.24bn, an increase of £25m.
- The company's total sales target has been revised upwards to £7.5bn from £7.3bn.
- Second-quarter sales surpassed forecasts by £70m, with UK sales up 2.8% and international sales up nearly 37%.
- Next plans to return an additional £169m to shareholders via share buybacks or a special cash dividend.
- Share buybacks will be executed up to a share price limit of £135.
Next has upgraded its profit and sales targets for the year, reporting that second-quarter sales exceeded expectations. The FTSE 100 retailer cited a boost from warm weather and the release of pent-up demand as key drivers for the strong performance.
Total UK sales increased by 2.8% in the second quarter, while international purchases saw a significant rise of nearly 37%. The company has raised its pre-tax profit expectation for 2026 to £1.24bn, an increase of £25m from previous estimates, which would represent 7.3% growth year-on-year. The total sales target has also been revised upwards to £7.5bn from £7.3bn.
In addition to its improved financial outlook, Next plans to return more cash to investors. The company intends to buy back £524m worth of its own shares this year, an increase of £14m from its prior plan. So far, Next has spent £355m on share repurchases at an average price of £127.69 per share, reducing its total share pool by 2.3%. The remaining £169m allocated for shareholder returns will be used for further buybacks up to a strict share price limit of £135. If the stock price surpasses this threshold, the company will distribute the remaining funds as a one-off special cash dividend.