UK's Next plc beats Q1 forecasts with 11.4% surge in full-price sales

The company reported stronger-than-anticipated full-price sales across both UK and international divisions. The retail sales in physical stores outperformed expectations, rising by 5.2 per cent, although the company forecasts this trend to level off for the remainder of the year due to the temporary boost from favourable weather, Next said in a press release.

The online sales in the UK also performed well, with Next UK up 4.2 per cent and Label UK up 15.7 per cent, resulting in a total UK online growth of 8.9 per cent. Overall, UK sales increased by 7.3 per cent.

International online sales surged by 29.6 per cent, contributing to a 12.1 per cent rise in total product full-price sales. Additionally, Next finance interest income grew by 1.0 per cent, bringing total full-price sales growth to 11.4 per cent YoY.

For full-year 2025-26, the company is projecting full-price sales of £5.4 billion (~$6.75 billion), a 6.0 per cent increase YoY. Total group sales, including markdown and investment income, are expected to reach £6.6 billion, up 5.0 per cent.

The group’s profit before tax is forecast at £1.08 billion, reflecting a 6.8 per cent rise. Pre-tax earnings per share (EPS) are estimated at 929.6 pence, marking a 10.0 per cent increase, while post-tax EPS is projected at 698.1 pence, up 9.7 per cent YoY.

For Q2 FY25, Next plc expects full price sales to grow by 6.5 per cent YoY, bringing the estimated first-half growth to 8.8 per cent. Sales growth in the second half is projected at a more modest 3.5 per cent, due to stronger base figures from Autumn-Winter 2024 and the anticipated economic impact of April’s National Insurance increases.

ALCHEMPro News Desk (SG)