Next has upped its annual profit forecast again

Next has upped its annual profit forecast again after second‑quarter sales significantly outperformed expectations. Full price sales jumped 9.2% in the 13 weeks to 1 August more than double the retailer’s original 4% projection. That surge translated into an extra £70m in revenue, with £19m coming from the UK and £51m from international markets.

The company credited the strong performance to a mix of factors… UK temperatures matched last year’s unusually warm summer, and shoppers in the Middle East and Northern Europe returned in force after a slower first quarter. Next also said it was able to invest more than planned in marketing that delivered solid returns. With momentum building, Next has increased its full‑year profit guidance by £25m, now expecting £1.24bn in pre‑tax profit, a 7.3% rise compared with last year. Roughly £15m of that upgrade came from higher sales, while better‑than‑expected gains from equity investments added another £10m.

The standout performer was Next’s international online business, where sales rocketed 36.9%. UK sales grew at a steadier 2.8%, with a 5% rise in online orders offsetting a slight 0.3% dip across physical stores. Next’s Label platform, its marketplace for third‑party fashion and lifestyle brands continued to grow, posting a 13.2% increase in sales.

Looking ahead, the retailer now expects full price sales to hit £6bn this year, up 6.3%, with total group sales forecast to rise 6.6% to £7.5bn. Despite a strong second quarter, Next is keeping its outlook for the rest of the year unchanged, still predicting 5% growth in full‑price sales.