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Next Plc raised its profit forecast for a fifth time this financial year after sales at the British retailer soared in the key Christmas period.
The fashion and homeware company now expects £1.15 billion ($1.6 billion) in pretax profit this fiscal year, up from its October guidance of £1.14 billion. Full-price sales rose 10.6 percent in the nine weeks to Dec. 27, Next said Tuesday in a trading update, on track to beat its outlook for the quarter.
The sales boost in the key holiday season cements a stellar year for a company whose 500 stores nationwide make it a prominent indicator of the health of British retail. Shares of Next rose as much as 3.3 percent in early trading in London, following a 44 percent surge in 2025.
Chief executive officer Simon Wolfson had previously warned of a slowdown, blaming the Labour government’s handling of the economy and its higher taxes that increased employment costs. But Next saw sales rise both in the UK and overseas, and it repeatedly lifted its guidance to reflect strong performance.
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Next expects sales and profit to grow next financial year though at a slower pace, with the retailer citing labor market pressure — unemployment is rising and wage growth is easing in the UK — weighing on customer spending.
“We expect that the well-known usual caution of guidance will be more than compensated by the robust Xmas print,” Jefferies analysts said in a note.
The retailer was boosted in its current financial year ending Jan. 31 by the fallout from a cyberattack that disrupted rival Marks & Spencer Group Plc. In Europe it has benefited from the consolidation of warehouses with Zalando SE, which handles Next’s online sales on the continent.
By Maddie Parker
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