Following today’s release of Next’s figures for the three months ending 1 August 2026; Louise Deglise-Favre, lead apparel analyst at GlobalData, a leading intelligence and productivity platform, offers her view: “Next is selling itself short by attributing its strong Q2 performance to the exceptional weather in the UK and pent-up international demand, when its consistent outperformance of the apparel market shows that it continues to deliver with product offering, convenience and pricing strategy. In fact, Next’s total product full-price sales rose by 9.7% in Q2, landing £70m ahead of Next’s own expectations. As a result of its continued strong performance, the retailer has raised its full price sales growth guidance to 6.3% compared to 5.0% previously for the full year. This translates to a rise in its profit before tax guidance of £25m to £1,243m, up 7.3% on FY2025/26, attributed to sales being stronger than anticipated and additional earnings from equity investments.
“In the UK, Next’s full-price sales rose 2.8% in the quarter, driven by the online channel, which rose 5.0%, while retail store sales marginally fell 0.3%. In addition to a strong product offering, the UK performance was helped by the exceptionally hot weather pushing consumers to buy summer ranges. Within the UK online channel, the LABEL division, comprised of third-party brands, significantly outperformed, with full-price LABEL sales rising 13.2%, highlighting how brand selection is one of Next’s strengths. However, Next’s own brand online sales fell 1.2% in the quarter, which should alert the retailer to pay close attention to its own proposition if it wants to continue to capitalise on its strong value for money credentials.
“Online international full price sales rose 36.9% in Q2, helped by pent-up demand in the Middle East after a more muted Q1. While the Iran conflict has yet to be resolved, demand returned and trading resumed in many other Middle Eastern markets. The retailer also saw strong performances in Northern Europe, continuing the experience the benefits of its partnership with Zalando’s ZEOS distribution services in European markets.”
