Next Reports Strong First Half but Warns on Softer UK Outlook

Next plc (LON:NXT) posted strong first-half results, with both sales and profit ahead of last year, though the retailer cautioned that economic headwinds may weigh on growth in the months ahead.

For the six months to July 2025, total group sales rose 10.3% year-on-year to £3.25 billion, while statutory revenue climbed 9.9% to £3.15 billion.

Profit before tax increased 13.8% to £515 million, with post-tax earnings per share up nearly 17% at 330.2 pence. Online sales remained the standout, with international operations advancing 32.7% and the UK business up 11.1%.

The company reaffirmed its full-year guidance, forecasting full price sales growth of 7.5% to £5.44 billion and pre-tax profit of £1.1 billion, representing a 9.3% rise on last year.

However, it expects second-half growth to slow, with UK sales projected to rise just 1.9% compared with 7.6% in the first half, citing weaker consumer demand, tougher comparatives, and the absence of weather-related and competitor-driven tailwinds that aided earlier trading.

The firm also flagged broader macroeconomic concerns, warning that the UK economy faces “anaemic growth” constrained by declining job opportunities, rising regulation, unsustainable government spending, and a mounting tax burden.

“There is another reason to be cautious. The medium to long-term outlook for the UK economy does
not look favourable,” stated Next. “To be clear, we do not believe the UK economy is approaching a cliff edge. At best we expect anaemic growth, with progress constrained.”

Despite these challenges, the company said it remained confident in its long-term strategy, pointing to growth opportunities in international markets, online expansion, and efficiency improvements.