Next raises annual profit outlook again as overseas sales rocket
Next PLC on Wednesday increased full-year profit expectations once more after a strong quarter led by bumper growth in its International division.
The Leicester-based clothing and homewares retailer has made a habit of under-promising and over-delivering, giving 19 profit guidance upgrades before Wednesday's latest, since the start of financial 2024.
The latest upgrade saw shares in Next top the FTSE 100 leaderboard, rising 7.0% to 15,845.00 pence in London on Wednesday, an all-time high.
In a trading statement, Next said full price sales were up 9.2% in the 13 weeks to August 1, the second quarter of its financial year, compared with the year prior, "materially" ahead of its 4.0% forecast.
Online international growth led the way, up 37% on-year, with the UK up a more modest 2.8%.
Growth in the UK slowed from 4.4% in the prior 13-week period, with online Next brand sales declining 1.2%.
Total UK online sales grew 5.0%, with retail store sales edging down 0.3%.
Next said sales in the quarter were £70 million ahead of forecast (GBP19 million in the UK and £51 million overseas).
It put this down to the weather in the UK being as warm as last year, the release of some pent-up demand in the Middle East and Northern Europe after a weaker first quarter, and more profitable marketing than anticipated.
For the financial year as a whole, Next now expects pretax profit of £1.24 billion, up 7.3% on-year, and above prior guidance of £1.22 billion.
It eyes total group sales of £7.5 billion, up 6.6% on-year, and above the £7.3 billion previous outlook. This includes raised expectations for full price sales of £6.0 billion, up from £5.9 billion.
Next forecasts post-tax earnings per share of 812.9 pence, annual growth of 9.2%, raised from 792.9p previously.
In the UK, Next expects second half sales to be up 2.8% on last year, in line with performance in the second quarter. It expects growth internationally to moderate to 14% reflecting tougher comparatives.
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