Next has delivered a strong set of annual results, showcasing its resilience and adaptability in a challenging economic climate. The fashion and homeware retailer has also raised its profit forecast, demonstrating confidence in its operational strategy and market positioning.

Specifically, the company has increased its pretax profit guidance by 5.4 percent, now expecting to achieve 1.066 billion pounds.

Next posts strong set of annual results

This upward revision is supported by a robust annual performance for the year ending January 2025, during which Next reported a 10.1 percent increase in annual profit, surpassing the one billion pound mark for the first time. Full-price sales saw a notable rise of 5.8 percent, and total group sales climbed 8.2 percent to 6.3 billion pounds.

A significant driver of this growth has been the company's online sales channels. Online sales experienced a 9.1 percent increase, highlighting the effectiveness of Next's digital strategy and its ability to capitalise on the growing trend of e-commerce. In contrast, retail sales saw a more modest increase of 0.5 percent, underscoring the shift in consumer behaviour towards online shopping.

Breaking down the sales figures further, Next brand full-price sales increased by 7.5 percent, with online sales contributing significantly to this growth. Additionally, Total Platform sales also contributed to the overall positive sales performance, demonstrating the effectiveness of Next’s platform strategy.

Next upgrades forecast

The company now expects full-price sales in the first half of the year to rise 6.5 percent — up from the 3.5 percent it forecast in January — with a 5 percent increase in sales for the full year, versus 3.5 percent previously.

This upgraded forecast is based on the assumption of sustained growth in online sales and a relatively stable retail environment. Next plans to continue investing in its online platform, expanding its product offerings, and optimising its operational efficiency to drive future growth and maintain its competitive edge.

However, the company remains vigilant regarding the potential economic headwinds and will continue to monitor market conditions closely. The company has warned of "the risks to the wider UK economy," particularly concerning the impact of upcoming tax rises in April. Next anticipates that these tax increases will weaken the UK employment market and negatively affect consumer confidence as the year progresses.