Shares in Next (LON:NXT) rose 3% in early trade on Tuesday after the retailer reported stronger‑than‑expected trading over the crucial Christmas period, prompting another upgrade to its full‑year profit outlook.
In the nine weeks to 27 December, Next said full‑price sales climbed 10.6% year‑on‑year, comfortably ahead of its own guidance of around 7%, with full‑price UK sales up 5.9% and international sales surging 38.3%. The beat was attributed to better stock availability in the UK and expanded marketing and distribution overseas.
As a result, Next raised its forecast for profit before tax for the year ending 31 January 2026 by £15 million, to £1.15 billion, reflecting roughly 13.7% growth on the prior year. Post‑tax earnings per share are now expected to be up around 16.1%.
That marks the fifth profit guidance increase in the current financial year, a run of upgrades that has underpinned Next’s strong share price performance and helped it outperform many of its high‑street peers.
Today’s update also included initial guidance for the 2026/27 financial year, with Next projecting full‑price sales growth of about 4.5% and profit before tax of around £1.20 billion next year, assuming no major acquisitions. The company expects to generate significant surplus cash this year and return capital to shareholders, including ordinary dividends and other distributions.
Despite the upbeat results, Next flagged a more cautious medium‑term outlook, saying growth in the UK is likely to slow, partly because of tougher comparatives and broader pressures such as employment trends that could weigh on consumer spending.