NEXT lifts outlook after 'stronger-than-expected' sales

NEXT has raised its sales and profit guidance following a stronger-than-expected third quarter, marking another robust performance for one of the UK’s most resilient retail chains.

In the thirteen weeks to 25 October 2025, full price sales were up 10.5% versus last year, coming in £76 million ahead of guidance, which had predicted growth of 4.5%.

UK sales rose 5.4% year-on-year, slightly below the 7.6% growth achieved in the first half but still ahead of expectations of 1.9%.

The company noted that while sales growth in the UK has slowed compared with the "exceptional" first-half performance - helped earlier in the year by favourable weather and competitor disruption - growth remained stronger than forecast.

NEXT said it had underestimated the positive impact of improved stock levels, as last year’s stock deliveries were delayed by disruption in Bangladesh and global freight constraints.

Elsewhere, overseas sales surged 38.8%, exceeding both the 28.1% growth achieved in the first half and the company’s guidance of 19.4%.

NEXT attributed this to higher-than-expected returns on digital marketing investments and improved stock availability following the consolidation of warehousing operations in Europe.

Looking ahead, the retailer has increased its guidance for full price sales in the fourth quarter from 4.5% to 7%, adding a further £36 million of full price sales to its forecast.

As a result of the stronger Q3 and improved Q4 outlook, NEXT is increasing its full-year profit before tax guidance by £30 million to £1.135 billion.

The company also raised its total group sales guidance by £150 million, £38 million more than the increase in full price sales.

Of this, £23 million reflects the timing of markdown sales - more surplus stock was placed into the September mid-season sale rather than the Christmas sale - while £15 million comes mainly from additional clearance sales. Total surplus stock in the second half is expected to rise around 3.5%.

NEXT, which operates 899 stores, has remained a consistent bright spot across the retail sector in recent years, delivering solid trading despite cost-of-living pressures and higher operating costs.

Julie Palmer, partner at Begbies Traynor, said: "NEXT has once again proven why it’s the gold standard in UK retail.

"With guidance lifted and healthy sales growth both at home and abroad, the retail giant’s winning formula of tight cost control, effective stock management and a well-balanced online and store offer is clearly paying off.

"At a time when many retailers are feeling the squeeze from rising costs, weak consumer confidence and uncertainty around the next Budget, NEXT appears largely immune to such pressures."