Next PLC has raised its profit outlook for the fifth time this financial year after stronger-than-expected Christmas trading in the UK and a sharp acceleration

in international sales.

The FTSE 100-listed clothing and homewares retailer said on Tuesday that full-price sales rose 11% in the nine weeks to December 27, well ahead of its previous guidance for 7% annual growth.

UK sales increased 5.9%, beating earlier expectations of 4.1%, while international sales jumped 38%, far exceeding the company’s prior forecast of 24%. UK online sales rose 9.1% over the quarter, with retail store sales growing by 1.4%.

Next said the stronger performance, combined with additional sales expected in January, would add £51 million to full-price sales for the year.

As a result, the group lifted guidance for pretax profit in the 2026 financial year by £15 million to £1.15 billion, representing growth of 14% from £1.01 billion in financial 2025. The retailer has now upgraded profit expectations five times, following earlier increases in March, May, July and October last year.

Total group sales, including discounting, are now forecast at £6.97 billion, up 10% year-on-year and above the previous estimate of £6.87 billion. Full-price sales are expected to rise 11% to £5.60 billion. Post-tax earnings per share are forecast at 738.8p, up 16% year-on-year, compared with a previous estimate of 729.4p.

Guidance is provided on a 52-week basis to allow comparison with prior years, although Next’s current financial year, ending January 2026, includes a 53rd week. The additional week is expected to contribute around £22 million in pretax profit and £20 million in cash flow.

Shares in Next rose 3.2% to 14,020p in London trading on Tuesday morning, outperforming the FTSE 100, which was up 0.6%.

In the UK, the retailer said sales growth slowed but by less than anticipated, helped by higher stock availability following supply chain disruptions last year linked to Bangladesh and global freight delays. End-of-season sale stock levels were 5% higher than last year, though clearance rates were better than expected.

International growth was driven by increased profitable marketing spend and stronger-than-forecast sales through European fashion platform Zalando.

Next said cash generation remained robust, with surplus cash of £474 million expected for the full year.

Looking ahead, the retailer forecast pretax profit of £1.20 billion for the year to January 2027, up 4.5%, assuming no further acquisitions. Total sales are expected to rise 4.2% to £7.26 billion, with full-price sales up 4.5% to £5.86 billion and post-tax earnings per share increasing 4.3% to 770.4p.

Cash available for shareholder distributions, including ordinary dividends, is forecast at £768 million, which Next said would deliver a total shareholder return of 9.1%.

The company cautioned that growth is expected to moderate next year due to tougher UK comparatives, ongoing pressure on employment, slower international growth and changes in overseas stock availability.

Next is due to report full-year results for the period ending January 31 on March 26. Photo by Edward, Wikimedia commons.