Looking ahead, Next issued its initial guidance for the year ending January 2027, forecasting a moderation in growth. Full price sales are expected to rise 4.5 per cent to £5.86 billion, while group profit before tax is forecast at £1.20 billion, up 4.5 per cent. Post-tax earnings per share (EPS) is expected to grow 4.3 per cent, assuming no share buybacks.
Total group sales growth of 4.2 per cent is lower than full price sales growth of 4.5 per cent, mainly due to markdown sales not growing as quickly, Next said in a press release.
UK sales growth is forecast at 1.6 per cent, reflecting tougher comparatives, easing benefits from favourable weather and competitor disruption, and ongoing pressure on UK employment. International online sales are still expected to grow strongly at 16.5 per cent, although below the exceptional levels seen in the current year as marketing investment growth moderates.
Assuming no acquisitions, Next expects £768 million to be available for shareholder distributions in 2026-27, including ordinary dividends and capital returns, representing 4.8 per cent of its current market capitalisation. Combined with forecast EPS growth, this would deliver a total shareholder return of around 9.1 per cent, assuming a constant price-to-earnings ratio.
Next is scheduled to announce its full-year results for the year ending January 31, 2026, on March 26, 2026, added the release.
ALCHEMPro News Desk (SG)
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