London Daily

Focus on the big picture.
Friday, Jul 04, 2025

High street giant Next exceeds increased profit expectations but prepares for 'difficult year'

High street giant Next exceeds increased profit expectations but prepares for 'difficult year'

The company made multiple acquisitions over the past year of struggling retailers JoJo Maman Bebe, Joules, Made.com and Cath Kidston. Reducing items to clearance added millions to profits, Next said.
High street retailer Next has outpaced its own increased profit guidance by £10m.

Financial results for the year ending in January showed profit before tax hit £870m, more than the £860m that had been forecast.

The high street giant and FTSE 100 constituent had increased its profit outlook in January as a result of far better than expected Christmas sales: full-year profit before tax guidance was increased by £20m to £860m.

In 2021 profit before tax stood at £823m, meaning 2022 figures were up 5.7%. Compared to the 2019-2020 figure it's a 16.3% increase.

Price rises are forecast to be lower than previously expected. Costs will rise 7% in the spring/summer season - a drop from a previously forecast 8% rise - and 3% in the autumn/winter months, half the 6% predicted in the past.

Sales were also up 8.4% on 2021 despite cost of living pressures weighing on households. Discounting items added £5m to profits and clearance rates and end of season sales also surpassed expectations.

Shareholders have received record earnings per share. In January basic earnings per share were 573.4p, up from 530.8p in January 2022 and £472.4p in January 2020.

The company has been on a buying spree in the past 12 months, purchasing brands in difficulty: JoJo Maman Bebe, Joules, Made.com and Cath Kidston.

"It has been a good year for Next", chairman Michael Rooney said.

But Mr Rooney expressed caution for the year ahead. "We have prepared (and budgeted) for a difficult year.

"If we continue to improve our product ranges, relentlessly manage our costs and upgrade our customer service, whilst also developing new business opportunities; we can lay the foundations for an exceptionally strong business and still deliver healthy profits, cash flow and dividends," he said.

Sales and profits are forecast to fall. The company is budgeting for full price sales to be down 1.5% on last year and profit before tax to fall to £795m.
Newsletter

Related Articles

0:00
0:00
Close
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
×