Prime Highlight:
- Next has upgraded its annual profit forecast to £1.15 billion following strong UK and international sales over the Christmas period.
- The retailer’s performance underscores continued demand for its clothing and home products and boosts investor confidence in the high street sector.
Key Facts:
- Annual sales are expected to rise 10.7% to £5.6 billion, with UK sales up 5.9% and international sales climbing 38%.
- The strong results contributed to a 2% rise in Next shares, making it one of the top gainers on the FTSE 100.
Background:
High street retailer Next has raised its annual profit forecast following a strong Christmas trading period, underlining continued demand for its clothing and home products both in the UK and overseas.
The company now expects pre-tax profits for the year ending January to reach £1.15 billion, marking its fourth upgrade in eight months. Annual sales are forecast to rise 10.7% to £5.6 billion, reflecting steady growth across key markets.
UK sales increased by 5.9% in the nine weeks to December 27, comfortably above expectations. Next said higher stock availability helped meet customer demand, following supply delays last year. The retailer also reported a stronger-than-expected end-of-year sale, adding £30 million more in revenue than planned.
International operations delivered an especially strong performance. Overseas sales climbed 38%, well ahead of forecasts, supported by increased marketing and higher volumes through its partnership with online fashion platform Zalando.
Next owns the UK rights to major brands such as Gap and Victoria’s Secret and holds stakes in several other labels. Analysts said its mix of a strong online platform and a wide network of physical stores continues to support growth, even as the wider retail market remains mixed.
Looking ahead, Next said it expects growth to continue in the next financial year, supported by a loyal customer base and a resilient business model. The company expects slower growth but is confident it can adapt to changing market conditions.
The update lifted investor confidence. Next shares rose 2%, making it one of the top gainers on the FTSE 100 and helping push the index to a new record high.
The strong results have raised hopes for the retail sector and highlighted Next’s position as one of the UK’s most consistent performers on the high street.