Following today’s release of Next’s figures for the 12 months ending 31 January 2026; Louise Deglise-Favre, lead apparel aAnalyst at GlobalData, comments: “Next continued to deliver a standout performance in FY2025/26, with total group sales rising 10.8% to £7.0bn, driven by an acceleration in international growth, alongside continued UK momentum from a broadening product offer. Notably, this impressive growth did not come at the expense of profitability; to the contrary, Next managed to grow its group profit before tax by 14.5% to £1,158m, surpassing its earlier guidance by £8m, thanks to better-than-expected January sales and a successful end-of-season sale. As a result, Next’s share price rose 6% this morning.
“While trading in the first eight weeks of FY2026/27 was encouraging in the UK and strong overseas up to the start of the conflict in the Middle East, Next expects the conflict to have consequences on its growth in the region and potentially on its wider operations. The retailer expects £15m of additional costs to arise from the conflict, which it plans to absorb. However, should the conflict last longer than its expected three months, Next will need to pass on some additional costs to consumers in the form of price rises, which will dampen its competitiveness. Despite this, Next maintains its FY2026/27 guidance for full-price sales and group pre-tax profits to both rise 4.5%. This measured guidance reflects the exceptional comparatives Next has set for itself and highlights the retailer’s realistic expectation that its growth will naturally slow as it becomes more established in international markets.
“In the UK, Next’s sales (stores and online) rose by 6.9%, significantly outperforming the rest of the UK retail market, as the retailer was able to convey its value-for-money credentials and convince shoppers to part with their money despite the tense economic background throughout the year. The retailer continues to benefit from its wide product ranges for all ages, positioning itself as a family-friendly option. Next also allowed shoppers to easily shop a variety of brands, including desirable premium brands, which some better-off consumers have been gravitating towards in an effort to buy less but better. UK growth was especially driven by the online channel, with sales rising 10.2%, as consumers continued to enjoy its convenience with features such as fast delivery and click & collect.
“Next’s FY2025/26 online international sales rose an impressive 39.5%, thanks in part to a significant investment in marketing to boost its visibility. In H2, its European online operations were also boosted by its transition to Zalando’s fulfilment platform ZEOS, which increased Next’s stock available to third-party partners in the region. This shows the strong demand for Next product offer in Europe, which can finally be matched with robust operational capabilities and stock levels to fully capture the potential of the European market.”
