Next Raises Full-Year Profit Guidance After Strong Third-Quarter Performance

UK fashion retailer lifts outlook again as full-price sales climb 10.5 % and overseas growth hits 38.8 %

UK fashion retailer Next plc has raised its pre-tax profit forecast for the year ending January 2026 to approximately £1.135 billion, up from its previous guidance of £1.105 billion.

This marks the fourth upgrade to its outlook in the past eight months.

The company reported full-price sales growth of 10.5 % in the third quarter to 25 October, with UK sales up 5.4 % and international sales surging 38.8 %.

The international performance was boosted by enhanced digital marketing spend and improved stock availability compared with last year, when supply-chain issues weighed on results.

Despite issuing a cautious note that UK sales growth may slow in the second half, Next increased its outlook for full-price sales in the fourth quarter to 7.0 %.

The retailer’s shares rose around 5 % following the announcement, extending their year-to-date gain to nearly 48 %.

Chief executive Simon Wolfson noted that while uncertainties remain in the domestic economy—among them wage and employment trends and borrowing costs—the company is well positioned.

Analysts at RBC Europe commented that Next stands to benefit as real wages rise in the UK and international expansion accelerates its global reach.

Overall, Next’s solid trading performance and lifted outlook highlight robust demand and strategic execution at a time when many retailers face headwinds from inflation, supply pressures and cautious consumer sentiment.