International expansion, third-party brands and effective marketing are offsetting weak store traffic, but tougher comparisons point to slower growth during the second half.
Next has raised its full-year profit forecast by £25 million after second-quarter sales substantially exceeded expectations. Full-price sales increased 9.2% year on year during the 13 weeks to August 1, 2026, compared with the retailer’s 4% forecast. Sales were £70 million ahead of plan, comprising £19 million from the UK and £51 million from overseas markets.
The retailer now expects group pre-tax profit of £1.243 billion for the year ending January 2027, up 7.3% from £1.158 billion in 2025/26. The additional sales contributed £15 million to the upgrade, while stronger performance from equity investments added another £10 million.
International growth accelerates
Online international sales surged 36.9% during the quarter, lifting first-half growth to 23.9%. Next attributed the outperformance to pent-up demand in the Middle East and Northern Europe following a weaker first quarter, alongside higher spending on profitable marketing campaigns.
UK sales rose a more modest 2.8%. Online revenue increased 5%, supported by 13.2% growth from Label, Next’s platform for third-party brands. Sales of Next-branded products online declined 1.2%, while physical-store revenue slipped 0.3%.
Warm weather also supported summer demand. Next had expected sales to face a difficult comparison with the unusually warm conditions recorded during the same period in 2025.
Growth expected to moderate
Next maintained its forecast for full-price sales to rise 5% during the second half. International growth is expected to slow to 14% because the comparison period includes last year’s improvement in European product availability following the adoption of Zalando’s ZEOS fulfilment service. Full-year full-price sales are now forecast at £6 billion, up 6.3%.
For apparel suppliers, Next’s performance favours responsive replenishment, reliable stock availability and assortments suited to multiple international markets. The September half-year results will show whether international momentum is supporting stronger forward orders or primarily converting inventory already within Next’s distribution network.
