5th Aug 2026 09:42
(Alliance News) - 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 GBP70 million ahead of forecast (GBP19 million in the UK and GBP51 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 GBP1.24 billion, up 7.3% on-year, and above prior guidance of GBP1.22 billion.
It eyes total group sales of GBP7.5 billion, up 6.6% on-year, and above the GBP7.3 billion previous outlook. This includes raised expectations for full price sales of GBP6.0 billion, up from GBP5.9 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.
By Jeremy Cutler, Alliance News reporter
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