Next raises profit outlook after better-than-forecast festive trading
The retail giant saw full-price sales jump 5.7 per cent higher over the nine weeks to December 30, with growth of 10 per cent in both of the final two weeks before Christmas Day. It is now forecasting full-year sales to rise by 4 per cent as it said January trading is also set to be better than expected.
Next upped its profit forecast to £905m for the year to January 27, which would be a 4 per cent rise on 2022-23 and compares with guidance for £885m given in November. The group is also predicting a 5 per cent rise in underlying group pre-tax profits to £960m for the year ahead on full-price sales up 2.5 per cent, or 6 per cent including recent acquisitions. It revealed it is not planning to increase prices for shoppers over the new financial year as it said its own input costs are set to be stable for the first time in three years.
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Hide AdIt cautioned over “some delays to stock deliveries” early this year from the Red Sea attacks on container ships and disruption to the all-important Suez Canal shipping route.


Next said trading in the run-up to Christmas was better than expected across its stores and online, with sales up 0.6 per cent and 9.1 per cent respectively in its Christmas quarter to December 30.
“Online performed particularly well, which we believe was as a result of service improvements versus last year,” it said.
The firm said consumers are set to be boosted in 2025 as wages finally outstrip inflation, which “will ease the pressure they have felt on their cost of living for the last eighteen months”.
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Hide AdNext said: “On the face of it, the consumer environment looks more benign than it has for a number of years, albeit there are some significant uncertainties.”
It cautioned there may be more unemployment over the coming year while many homeowners still face higher mortgage rates as they come off fixed deals.
Charlie Huggins, manager of the ‘Quality Shares Portfolio’ at Wealth Club, commented: "Next has pulled yet another rabbit out of the hat today, leading to a further upgrade to its full year sales and profit guidance. It has demonstrated once again why it is considered one of the best run retailers around.
“UK consumer spending appears to have defied gravity. A strong employment market and rising wages have helped cushion inflationary cost pressures, meaning consumers have continued to fill their Christmas stockings with Next's wares, despite the gloomy economic headlines.
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Hide Ad“Next's online sales were particularly strong reflecting better stock availability and excellent operational execution. This stands in stark contrast to other retailers which have struggled in the prevailing economic environment.
“The future for Next looks bright and is reflected in the group's guidance to grow sales and profits again in the year ahead. Next's core proposition is clearly resonating with the UK consumer and is being augmented by intelligent acquisitions of brands like Fat Face.
"With inflation falling and wages rising, the economic picture also looks a lot less bleak than at the start of last year."
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