Fashion retailer Next has today notched up its full year profit guidance for the fourth time in eight months as it reported a stronger-than-expected 10.5% rise in full-price sales for its third quarter to October 25.
The FTSE 100 company said sales exceeded expectations both in the UK and overseas.
Next, run by CEO Simon Wolfson, has over 800 stores in the UK and Ireland, including Reiss, Joules and Fatface stores, plus an online presence in more than 70 countries selling the Next brand and more than 700 others.
With the UK accounting for around 80% of its sales, it is often considered a useful gauge of how British consumers are faring.
The group said it now expected to report a pretax profit of £1.135 billion for the year to January 2026, up from previous guidance of £1.105 billion and the £1.011 billion the retailer made in 2024/25 when it breached the £1 billion mark for the first time.
Next said in September it expected the UK economy to weaken and its sales growth to slow to 4.5% in its second half from the 10.5% it reported for its second quarter, when it benefited from favourable weather and a cyberattack at rival Marks & Spencer.
Third-quarter UK sales increased 5.4%, with Next saying it underestimated the positive effect of improved stock levels this year compared with last year when deliveries were delayed by disruption in Bangladesh and constraints in global freight capacity.
Overseas sales jumped 38.8%, partly reflecting Next spending more on digital marketing than previously anticipated.
The group also increased its forecast for full price sales in the fourth quarter to 7%.
Shares in Next are up 41% so far this year.
Official data published last week showed British retail sales unexpectedly rose in September, despite a backdrop of weak employment, high inflation and concerns about tax increases in November's budget.
