Next PLC raises outlook after stronger-than-expected year-end

Next PLC said full-price sales for the nine weeks to Dec. 27 rose 10.6% and it raised its pretax profit forecast for the year ending late January to £1.15 billion; the company also gave initial guidance for fiscal 2027 expecting 4.5% full-price sales growth.

Next PLC raised its outlook after reporting stronger-than-expected year-end sales. The U.K. fashion retailer said total full-price sales for the nine weeks to Dec. 27 grew 10.6%, compared with its prior guidance of 7.0% for the fourth quarter as a whole. The update led the company to increase its pretax profit forecast for the year ending in late January. Next is often regarded as a bellwether for the U.K. retail sector. Key figures: - Full-price sales for the nine weeks to Dec. 27 rose 10.6%, against prior guidance of 7.0% for the fourth quarter. - Next now expects pretax profit for the year ending late January to rise 13.7% to £1.15 billion, up from a prior forecast of £1.135 billion. - For fiscal 2026, the retailer expects full-price sales to rise 10.7% to £5.6 billion, versus previous guidance of £5.55 billion. - For fiscal 2027, Next gave initial guidance expecting full-price sales to rise 4.5% and pretax profit to increase 4.5% to £1.2 billion. Summary: The stronger-than-expected year-end sales prompted Next to lift its forecasts for the current fiscal year and to issue initial guidance for fiscal 2027. The company now expects pretax profit of £1.15 billion for the year ending late January and has set preliminary growth figures for 2027. The timing of any further updates was not stated.