Next, one of the UK's biggest clothing retailers, has raised its profit forecast for the third time this year, adding £25m to bring its expected yearly profit to £1,243m. The upgrade came in a trading update on 5 August 2026 and would mean a 7.3% increase over last year's profit (Next plc trading statement).

Sales of full-price items (things sold at normal price, not on sale) rose 9% in the 13 weeks to 1 August 2026 compared with the same period last year. That was more than double what the company had expected — a 4% increase. Reuters reported the figure at 9.2%, with sales jumping 12% in July alone (Reuters). Next said sunny weather and customers in the Middle East and northern Europe finally spending money they had been holding back were the main reasons (The Guardian).

Investors reacted right away. Next's shares rose almost 7% to their highest ever price on 5 August, making it the best-performing stock in the FTSE 100 that day (The Guardian).

This is the third time in 2026 that Next has raised its profit forecast. The pattern has been steady. In January, the company reported a profit of £1,158m for the year ending January 2026, up 14.5% (Next plc results). At that point, it predicted this year's profit would be £1,210m. In May, it nudged that up to £1,218m (Next plc trading statement). Now it stands at £1,243m — about £33m higher than where it started in January.

Simon Wolfson, Next's chief executive, has now overseen three profit upgrades in a single year. The company runs more than 500 stores across the UK and also holds the UK rights to two American brands, Gap and Victoria's Secret. It owns stakes in other brands too, including Reiss and Joules (The Guardian).

The broader context here is worth understanding. Next has grown far beyond its roots as a mid-range UK clothing shop. Its Gap and Victoria's Secret deals put it in different corners of the clothing market, while its stakes in Reiss (a premium brand) and Joules (a heritage brand) reach different types of shoppers. When a retailer with this many different brands sees sales jump by double digits in a single month, analysts ask a key question: is this about Next's particular mix of brands, or are shoppers across the board spending more?

The weather explanation makes sense, but it's worth a closer look. Sunny weather does reliably boost summer clothing sales. But beating your own forecast by more than double suggests either that Next was very cautious when it made its initial prediction, or that customer demand shifted faster than the company expected. The mention of pent-up demand in the Middle East and northern Europe suggests international sales played a real role, though Next did not break down the numbers by region in this update.

For anyone watching the retail sector, the 12% sales growth in July is the number to track into the back-to-school and autumn-winter seasons. One strong month could be a fluke. But three forecast upgrades in six months points to something more lasting than Next expected at the start of the year. If the £1,243m profit figure holds, it would mean roughly 7.3% growth on top of the 14.5% growth Next already delivered last year.