Key facts
- Next PLC raised its profit outlook for the fourth time in eight months.
- Third-quarter sales increased by 10.5%, exceeding expectations.
- UK sales rose 5.4%, while overseas sales jumped 38.8%.
- The company now expects a pretax profit of 1.135 billion pounds for the year to January 2026.
- Next cited improved stock levels and increased digital marketing spend as contributing factors.
British fashion retailer Next has increased its full-year profit guidance for the fourth time in eight months, driven by stronger-than-expected sales results. The company reported a 10.5% rise in full-price sales for its third quarter ending October 25, surpassing previous forecasts.
Next now anticipates a pretax profit of 1.135 billion pounds ($1.52 billion) for the fiscal year ending January 2026, an increase from its prior guidance of 1.105 billion pounds. This follows the 1.011 billion pounds profit recorded in the 2024/25 financial year, which marked the first time the retailer breached the 1 billion pound threshold.
Third-quarter UK sales saw a 5.4% increase, with Next attributing this to improved stock levels compared to the previous year when global freight capacity constraints and disruptions in Bangladesh caused delivery delays. Overseas sales experienced a significant jump of 38.8%, partly due to increased investment in digital marketing. The group also raised its forecast for fourth-quarter full-price sales to 7.0%.
Analysts at RBC Europe noted that Next should benefit from continued real wage growth in the UK, though it will remain sensitive to the employment outlook and consumer borrowing costs.