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Highlights

  • First quarter full-price sales rose 11.4%, prompting a £14 million increase in full-year profit forecast to £1.08 billion.

  • UK and international online sales, alongside in-store gains, drove better-than-expected performance.

  • Company remains cautious on second-half sales amid economic pressures and tougher year-on-year comparisons.

British fashion and homeware retailer Next Plc (LSE:NXT.L) has upgraded its full-year profit forecast for the second time in as many months, following performance of the first quarter of its financial year. The retailer posted an 11.4% increase in full-price sales for the 13 weeks to April 26, with a spell of warm weather spurring demand for summer apparel and home ranges.

The company now expects pretax profit for the year to January 2026 to reach £1.08 billion, up from its previous forecast of £1.066 billion. This marks a continued upward trajectory following a record £1.011 billion profit in the 2024/25 financial year—the first time the group surpassed the £1 billion mark.

Shares in Next rose 2% in early trading on Thursday, building on an already impressive 32% year-to-date gain in 2025, as investors responded positively to the revised outlook and robust Q1 trading update.

Next is not increasing its sales guidance for the remainder of the year. The company noted that the early boost from favourable weather likely pulled forward demand, particularly benefiting physical retail locations. It cautioned that store sales are expected to flatten out over the rest of the year, especially as footfall normalises and weather patterns shift.

In-store sales were up 5.2% in the first quarter, a figure described by Next as “much stronger” than forecasted. However, the retailer acknowledged that warm conditions tend to give physical stores a temporary edge. Meanwhile, UK online sales climbed 8.9%, and international online sales surged 29.6%, indicating healthy digital growth in both domestic and overseas markets.

Next reiterated its full-year forecast of 6.0% growth in full-price sales, maintaining a measured stance as it eyes second-half challenges. The group cited the delayed impact of April’s tax increases and tougher comparisons against last year’s figures as reasons for caution in its second-half projections.

It’s also worth noting that the first quarter performance only marginally overlapped with rival Marks & Spencer’s online disruption, which began on April 25 following a cyberattack. Analysts estimate that M&S may be losing around £4 million in online clothing sales each day.