Next lifts full-year profit outlook after strong Christmas trading

British manner retailer Next has raised its nett forecast for the twelvemonth ending January 2026 aft reporting stronger-than-expected full-price income implicit the cardinal Christmas trading period.

The institution has raised its guidance for full-year nett earlier taxation by £15m ($20m) to £1.15bn, representing a year-on-year summation of 13.7%.

In the 9 weeks to 27 December, full-price income accrued by 10.6% compared with the erstwhile year, exceeding the retailer’s earlier guidance of 7.0%.

Growth was led by planetary online sales, which climbed 38.3%, portion UK income roseate by 5.9%.

The stronger performance, unneurotic with further expected income successful January, is acceptable to adhd £51m to full-price income for the year.

Post-tax net per stock are present forecast to turn by 16.1%.

Providing its archetypal outlook for the twelvemonth ending January 2027, Next said it expects full-price income to turn by 4.5%, with radical nett earlier taxation forecast astatine £1.20bn, besides up 4.5%.

Assuming nary further acquisitions, currency disposable for organisation to shareholders, including mean dividends, is projected astatine £768m. This is equivalent to 4.8% of the group’s existent marketplace capitalisation.

The institution said anticipated shareholder distributions, combined with forecast EPS maturation of 4.3%, connote a full shareholder instrumentality of 9.1%, assuming a changeless price-to-earnings ratio.

So acold successful the existent fiscal year, the full UK full-price income person risen by 6.6%, with online channels continuing to outperform carnal stores.

International online income were up 33% year-to-date and 38.3% successful the 9 weeks to 27 December, up of expectations.

Next said planetary maturation benefited from higher-than-anticipated profitable selling walk and stronger income done European aggregator Zalando, pursuing the determination to ZEOS’ level successful August, which improved banal availability crossed Europe.

The retailer besides reported that the measurement of banal successful its end-of-season merchantability was 5% higher than past year.

However, stronger clearance rates offset the impact, adding £30m to radical income guidance portion remaining nett neutral.

The fiscal twelvemonth ending January 2026 is simply a 53-week year, with the further week expected to lend astir £22m to nett earlier taxation and astir £20m to currency flow.

Looking up to 2026/2027, Next said it expects maturation to moderate, citing tougher UK comparatives, unit connected home employment, easing overseas maturation aft exceptional marketing-driven gains this year, and the lack of one-off improvements successful planetary banal availability that supported current-year sales.