Highlights

  • Overseas performance accelerates sharply with 38.8% jump in full price sales.
  • Full-year profit guidance upgraded to GBP 1,135m following stronger-than-expected quarter.
  • NEXT posts strong Q3 sales growth of 10.5%, exceeding company’s prior forecast.

NEXT plc (LSE:NXT) announced its trading statement for the thirteen weeks ended 25 October 2025, reporting a 10.5% year-on-year (YoY) increase in full price sales, surpassing its earlier guidance of 4.5%. This outperformance contributed GBP 76m above forecast for the period.

Sales growth was recorded across both domestic and international markets. In the UK, sales rose 5.4%, lower than the 7.6% growth achieved in the first half but ahead of the company’s forecast of 1.9%. International sales grew 38.8% YoY, exceeding both the first half’s 28.1% growth and guidance of 19.4%.

Performance by Division

For the 39 weeks to 25 October 2025, total full price sales increased 10.8% versus the prior year. UK online sales grew 8.7%, driven by consistent demand across NEXT Brand and LABEL. Retail stores saw a 4.3% uplift, while total UK sales advanced 6.8%.

International online sales performed strongly, up 31.5% year to date, supported by higher marketing expenditure and operational integration with Zalando’s third-party logistics network (ZEOS).

Sales Drivers and Operational Update

In the UK, NEXT noted that the moderation in sales growth compared to H1 reflected normalisation following favourable weather and competitor disruption earlier in the year. Improved stock availability also contributed positively, as last year’s supply was affected by delays in Bangladesh and global freight constraints.

Internationally, direct-to-consumer website sales exceeded expectations due to increased investment in digital marketing. Marketing spend in Q3 rose 50% compared with previous guidance of 25%, supported by higher returns on advertising expenditure.

Upgraded Guidance for Q4 and Full Year

NEXT revised its Q4 full price sales guidance from 4.5% to 7.0%, reflecting stronger-than-expected performance in Q3. The company expects UK growth to slow to 4.1% in Q4, while overseas sales growth is forecast to moderate to 24.3% due to higher comparison from last year’s step change.

For FY2025/26, full price sales are now projected at GBP 5,552m (+9.7% YoY), with total group sales expected to reach GBP 6,870m (+8.7% YoY). Profit before tax guidance has been raised by GBP 30m to GBP 1,135m (+12.2% YoY).

Capital Allocation and Dividends

NEXT anticipates generating approximately GBP 425m in surplus cash this year, with total funds available for distribution around GBP 500m. The company has returned GBP 131m to shareholders via buybacks but expects no further repurchases this fiscal year due to the share price exceeding its buyback threshold of GBP 121 per share.

Remaining surplus cash of GBP 369m is expected to be returned through a special dividend, estimated at GBP 3.10 per share, payable in January 2026. The interim dividend of 87p per share will be paid on 5 January 2026.

Share Performance

NXT’s shares were trading at GBX 14,195.0 per share on 29 October 2025, up 5.89% from its previous close of GBX 13,405.