Next lifts profit outlook after quarterly sales beat expectations

Fashion retailer Next edged up its full-year profit guidance for the fourth time in eight months on Wednesday as it reported a stronger-than-expected rise in full-price sales for its third quarter to October 25.

The FTSE 100 company said it now expected to report a year to end-January 2026 pretax profit of £1.135 billion (€1.29 billion), up from previous guidance of £1.105 billion and the £1.011 billion made in 2024/25 when it breached the £1 billion mark for the first time.

Next, run by CEO Simon Wolfson, has more than 800 stores in the UK and Ireland, including Reiss, Joules and Fatface stores, plus an online presence in more than 70 countries selling the Next brand and more than 700 others. With the UK accounting for around 80 per cent of its sales, it is often considered a useful gauge of how British consumers are faring.

The group had said in September it expected the UK economy to weaken and its sales growth to slow to 4.5 per cent in its second half from the 10.5 per cent it reported for its second quarter when it benefited from favourable weather and a cyberattack at rival Marks & Spencer.

However, it said third-quarter sales outperformed in both the UK and overseas - up 5.4 per cent in the UK and up 38.8 per cent overseas.

The group also increased its guidance for full price sales in the fourth quarter to 7.0 per cent. - Reuters