5th Nov 2026 09:37
(Alliance News) - Next PLC on Thursday kept its annual profit guidance unchanged despite a faster-than-expected rise in full-price sales in the third quarter, led by its international business.
Shares in the Leicester-based clothing and homewares retailer were up 0.2% to 15,630.00 pence early Thursday in London.
Next reported an 8.1% increase in full-price sales in the 13 weeks to October 31, ahead of its previous guidance for 5.8% growth, driven by stronger-than-expected international trading.
International online sales rose 32%, well above Next's forecast of 21% growth, while UK full-price sales increased 2.0%, in line with expectations, despite unseasonably warm weather weighing on September trading. UK online sales grew 4.4%, offsetting a 1.7% decline for retail stores.
Next maintained its full-year pretax profit guidance at GBP1.26 billion, up 8.4% year-on-year, as the additional GBP5 million profit generated by stronger international sales will be offset by higher operating costs arising from new EU tariffs, the company explained.
Next did however raise its full-year full-price sales forecast to GBP6.03 billion, up 7.3% from the year before, from GBP6.00 billion previously, and its total group sales guidance to GBP7.54 billion from GBP7.49 billion. It maintained its fourth-quarter full-price sales growth forecast at 5.8%.
Next expects to have GBP491 million in cash available for shareholder distributions this year and has returned GBP355 million of this already through share buybacks. As Next's share price currently is above the cap it set for buybacks, the company said the remaining surplus cash, if not used for acquisitions, could be returned through a special dividend or capital distribution instead.
By Tom Waite, Alliance News editor
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