Next raises full-year profit forecast to £1.255bn as UK sales growth slows
Next has raised its full-year pre-tax profit forecast for the year to January 2027 to £1.255bn, and this marks the fourth upward revision this year. The revised forecast is £12m higher than the prior estimate and represents an 8.4% increase over the £1.158bn profit delivered in the last financial year.
In the six months to 1 August, Next reported a 10.5% rise in pre-tax profit to £569m compared with the same period last year, and full-price sales increased 7.7% thanks to warm summer weather. However, the retailer cut its forecast for second-half UK sales growth from 2.8% to 2.0% because of inflation, higher mortgage costs and a subdued employment market. Next lifted its overall second-half full-price sales growth outlook from 5.0% to 5.8% and raised the international division’s forecast to 20.5% growth for the same period. The August trading update had already increased the profit forecast to £1.243bn after better-than-expected summer trading. Next pointed to concerns over the UK economy, and it noted that inflation, higher mortgage costs and a subdued employment market are weighing on its outlook for consumers.
Next has raised its profit forecast three times earlier in 2026, with the August update boosting the estimate to £1.243bn after strong summer performance. The company attributed that earlier rise to warm UK weather, pent-up overseas demand and increased marketing spend.
What we know
It now expects pre-tax profit of £1.255bn for the year to January 2027, up £12m on its previous forecast and 8.4 per cent ahead of last year.
Next posted a 10.5 per cent rise in first-half pre-tax profit to £569m for the six months to 1 August, while full-price sales climbed 7.7 per cent, helped by the warm summer weather.
However, the retailer struck a more cautious note on its domestic business, cutting its forecast for second-half UK sales growth from 2.8 per cent to two per cent.
Its international business has made an encouraging start to the period, prompting Next to raise its second-half sales growth forecast for the division to 20.5 per cent.
Next’s latest guidance puts it on track to surpass the £1.158bn pre-tax profit it delivered in its previous financial year.