Next lifts profit forecast again as warm spring drives £55m sales boost
Next has raised its annual profit forecast for the second time this year after warmer spring weather drove stronger-than-expected sales in the first quarter.
Next has raised its annual profit forecast for the second time this year after warmer spring weather drove stronger-than-expected sales in the first quarter.
The fashion and home retail giant saw full price sales rise 11.4% in the 13 weeks to 26 April — ahead of the 6.5% increase it had forecast — delivering a £55m sales boost.
The business now expects to post a pre-tax profit of £1.08bn for the 2025/26 financial year, up from its previous estimate of £1.066bn.
It said “we believe much of the over-performance in the first quarter has been the result of warmer weather, which has benefited the sale of summer-weight clothing.”
Though it noted, “it is likely that some of these sales have been pulled forward from Q2. So, despite the strength of Q1, we are not increasing our sales guidance for Q2, or the rest of the year.”
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UK retail sales were up 5.2% while total UK online sales grew by 8.9%, including a 15.7% jump in third-party label sales. Overseas online sales surged 29.6%.
Retail trading outperformed expectations, though Next warned this may not continue. “In our experience, shops benefit disproportionately from the favourable weather. So we are expecting our retail sales to return to being broadly flat for the rest of the year,” it added.
This marks the second time the retailer has upgraded its profit guidance in 2025, as it continues to defy broader pressure in the UK retail sector.
Despite the strong Q1, Next maintained a cautious outlook, keeping full-year sales guidance at 6% amid concerns about shifting demand and the potential impact of National Insurance increases and tougher year-on-year comparisons in the second half.
Total group sales, including markdowns and investments, are still expected to reach £6.6bn — up 5% on last year.
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