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Next Issues Fifth Profit Upgrade to £1.15bn After Strong Christmas

Exceptional overseas online growth with improved stock availability underpinned the beat, prompting cautious guidance for next year.

Overview

  • Full‑price sales rose 10.6% in the nine weeks to 27 December, with the UK up 5.9% and international up 38.3%.
  • Pre‑tax profit guidance for the year to January increased to £1.15bn, the fifth upgrade this financial year, after roughly £51m of extra profit from the festive outperformance.
  • Management now forecasts about 4.5% full‑price sales growth and roughly £1.2bn pre‑tax profit in 2026/27, citing pressure from a weakening UK jobs market and tougher comparatives.
  • International online strength was helped by operational changes and the Zalando logistics transition that improved stock availability across Europe; UK online grew 9.1% versus 1.4% in stores.
  • Next completed approximately £131m of share buybacks and expects around £768m available for shareholder distributions, as the shares rose about 2–3% after the update.