Next now expects full-year full-price sales of £6.0 billion (~$6.90 billion), up 6.3 per cent year on year (YoY), while total group sales, including markdowns and investments, are forecast to reach £7.5 billion (~$8.63 billion), representing growth of 6.6 per cent. Post-tax earnings per share (EPS) are projected at 812.9 pence, up 9.2 per cent from the previous year.
Next plc has raised its full-year outlook after stronger-than-expected Q2 trading, with full-price sales rising 9.2 per cent year on year, well above guidance.
The retailer increased its full-year pre-tax profit forecast to £1.243 billion (~$1.43 billion) and expects full-price sales of £6.0 billion (~$6.90 billion).
International online sales remained the strongest growth driver in the first half.
Despite the strong first half (H1) performance, Next maintained its second half guidance, expecting full-price sales to grow 5.0 per cent YoY. The company forecasts UK sales growth of 2.8 per cent and international sales growth of 14.0 per cent during the second half, noting that overseas comparisons will become more challenging following last year’s transition to ZEOS distribution services, which significantly boosted product availability across its European aggregator business, the company said in a press release.
Reflecting the stronger trading, the company raised its full-year pre-tax profit guidance by £25 million (~$28.8 million) to £1.243 billion (~$1.43 billion), representing growth of 7.3 per cent over the previous year. The upgrade includes an estimated £15 million (~$17.3 million) profit contribution from higher full-price sales and £10 million (~$11.5 million) from better-than-expected performance of its equity investments.
Q2 sales beat guidance by a wide margin
For the 13 weeks ended August 1, 2026, full-price sales rose 9.2 per cent YoY, materially exceeding the company’s earlier guidance of 4.0 per cent growth. Sales outperformed expectations by £70 million (~$80.5 million), comprising £19 million (~$21.9 million) in the UK and £51 million (~$58.7 million) from international markets.
Next said the stronger-than-anticipated performance was supported by UK weather conditions matching last year’s exceptionally warm summer, the release of pent-up consumer demand in the Middle East and Northern Europe following a weaker first quarter, and its ability to increase spending on profitable marketing activities.
During the first half (H1), total full-price sales increased 7.7 per cent YoY. UK full-price sales rose 3.6 per cent, supported by a 7.4 per cent increase in online sales, although retail store sales declined 1.7 per cent. International online sales remained the strongest growth driver, surging 23.9 per cent over the period.
Fibre2Fashion News Desk (SG)
