Next Hikes Outlook, Shares Rise on Strong Results

Next plc (LON: NXT) raised its full-year profit forecast after second-quarter sales came in ahead of expectations, lifting its share price by around 1.7% on Thursday.

The stock has gained nearly 28% year-to-date.

Full price sales rose 10.5% in the 13 weeks to 26 July, outperforming the retailer’s prior guidance of 6.5% growth by £49 million.

The company cited favourable weather and disruption at a competitor in the UK, along with stronger-than-expected international demand, driven by more effective digital marketing.

As a result, Next increased its guidance for second-half full price sales growth from 3.5% to 4.5%, and raised its full-year pretax profit forecast by £25 million to £1.105 billion. 

The retailer also expects full-year full-price sales to rise 7.5%, up from its previous forecast of 6.0%.

International online sales were said to have been particularly strong, climbing 26.4% in the second quarter and prompting the company to upgrade its full-year international online growth outlook to 23.8%.

Despite the upbeat performance, Next maintained a cautious tone for the second half, citing tougher year-on-year comparisons and potential pressure on UK consumer spending due to the softening labour market and the lingering effects of National Insurance changes.

Next said it plans to return surplus cash through a special dividend in early 2026, should share buybacks remain constrained. Interim results are scheduled for 18 September.