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last mo.

Next Plc Reports Record £1 Billion Profit, Raises Forecast for 2025-26

The UK retailer's strong online and international sales drive growth, but it warns of challenges from rising costs, tax hikes, and regulatory pressures.

Simon Wolfson has been Next's CEO since 2001.
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Next said that full-price sales in the first eight weeks of the year had been ahead of expectations

Overview

  • Next achieved annual pre-tax profits exceeding £1 billion for the first time, a 10% increase from the previous year.
  • The company raised its profit forecast for 2025-26, projecting a 5.4% rise to £1.07 billion, bolstered by better-than-expected trading in early 2025.
  • Upcoming UK tax increases, including higher national insurance and minimum wage costs, are expected to add £67 million to expenses, partially offset by price adjustments and operational efficiencies.
  • Next plans to open 10 new stores in 2025-26, marking its first trading space expansion in over five years, despite broader declines in store sales.
  • The retailer is appealing a tribunal ruling in an equal pay case involving over 3,500 workers, which could have significant financial implications if upheld.