Next Raises Full-Year Profit Forecast Amid Warm-Weather Sales Surge, Flags Slower H2 Growth

Next announced a fourth upward revision to its annual profit target, raising full-year pre-tax profit guidance by £12 million to a range of £1.255 billion-£1.26 billion. For the first half, pre-tax profit was £569 million, up 10.5 % YoY, with full-price sales growth of 7.7 % in the six months to August 1. The company now expects full-price sales growth to slow to 5.8 % in H2, UK sales growth to 2.0 % (down from 2.8 %), and international online sales to rise 20.5 %.

Next raises profit guidance again, flags slowdown in H2 sales growth; shares rise NEXT sales rise but UK outlook softens as Wolfson warns against tax rises Reuters

Warm, unusually dry summers boosted consumer spending on seasonal apparel, lifting online traffic and overall sales. Next also cited cost-saving measures in its warehousing network as contributors to the profit uplift.

Next raises profit guidance again, flags slowdown in H2 sales growth; shares rise

• First-half pre-tax profit: £569 million (up 10.5 %).

Next raises profit guidance again, flags slowdown in H2 sales growth; shares rise

• Full-price sales growth H1: 7.7 %; projected H2: 5.8 %.

Next raises profit guidance again, flags slowdown in H2 sales growth; shares rise

• UK sales growth guidance H2: 2.0 % (down from 2.8 %).

Next raises profit guidance again, flags slowdown in H2 sales growth; shares rise

• International online sales growth guidance H2: 20.5 % (up from 14.7 %).

Next raises profit guidance again, flags slowdown in H2 sales growth; shares rise

• Full-year profit guidance: £1.255 billion-£1.26 billion.

Next raises profit guidance again, flags slowdown in H2 sales growth; shares rise

The retailer is deploying artificial-intelligence tools across the business but maintains that fashion design will continue to be led by human creativity.

The Guardian

The upgraded guidance makes Next the top riser on the FTSE 100 for the session, reinforcing its position as one of the few UK retailers delivering double-digit profit growth amid a challenging domestic environment. The slower UK sales outlook underscores broader consumer-spending headwinds linked to inflation, mortgage rates, and potential fiscal tightening. International online growth remains a vital driver for overall performance.

NEXT sales rise but UK outlook softens as Wolfson warns against tax rises

Sources differ on the exact full-year profit target: Reuters cites £1.255 billion, while The Guardian reports £1.26 billion. Both agree the increase is £12 million from the prior forecast. No source provides a detailed breakdown of the assumptions behind the revised UK sales guidance.

Next raises profit guidance again, flags slowdown in H2 sales growth; shares rise

The retailer referenced the upcoming budget on October 28, suggesting that any tax hikes could exacerbate consumer-spending pressures. Cost-saving initiatives, especially in warehousing, will continue to support margins through the second half of the financial year.

NEXT sales rise but UK outlook softens as Wolfson warns against tax rises

• “These worries will only be compounded if they are accompanied by tax increases.” — Chief Executive Lord Simon Wolfson

NEXT sales rise but UK outlook softens as Wolfson warns against tax rises