Next raises profit forecast in Britain — Asharq Al-Awsat
In the United Kingdom, clothing retailer Next raised its forecast for annual profit before tax by £12 million, to £1.255 billion. The company reported a 10.5% increase in first-half profit while expecting sales growth in the UK market to slow, Asharq Al-Awsat reports.
First-half results
In the six months to August 1, full-price sales rose by 7.7%. Next attributed this result in part to the hot summer in Britain. First-half profit before tax amounted to £569 million, or $762 million.
The group has more than 800 stores in the United Kingdom and Ireland, including Reiss, Joules and FatFace outlets. Next also sells online to customers in the United Kingdom and abroad.
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Expectations for the second half
Next forecasts that full-price sales growth will slow to 5.8% in the second half. The company cut its forecast for the sales growth rate in the United Kingdom from 2.8% to 2%. The domestic market accounts for about three quarters of its sales.
Next cited rising inflation, higher mortgage interest costs and a weak labor market among the key risks. The company also said these factors could intensify if taxes are raised. The comment came ahead of the first budget of new Finance Minister John Healey, scheduled for October 28.
Next's international business has started the season well, according to the company's assessment. The retailer raised its forecast for sales growth in this segment in the second half to 20.5%. The updated profit forecast takes into account a slight improvement in sales expectations and additional cost savings, mainly in warehouse operations. In the 2025/26 financial year, Next's profit before tax amounted to £1.158 billion.
