Next Raises Profit Outlook for Fourth Time in 2026
Next raised its full-year profit forecast by £12m to £1.26bn on 17 September 2026. It was the fourth increase in 2026. The revision came with half-year results for the six months to July. The Guardian
Total group sales rose 9% in that period. Pre-tax profit, or profit before tax, was £566m, up 11% from a year earlier. Sales beat the company's earlier expectations.
In May, Next had guided to £1.218bn in profit before tax for 2026/27. It forecast 5.0% growth in full-price sales, meaning items sold at full price and not on discount, for the full year. Reuters Second-quarter full-price sales then rose 9.2%, against a 4% forecast. In August, Next added £25m to full-year profit guidance after that quarter. Reuters
Next said warm weather helped the first half. The UK had two unusually warm summers, which supported demand for summer clothing. Clothing leads its offer. The group runs more than 500 stores in the UK and holds the UK rights to Gap and Victoria's Secret, with stakes in Reiss and Joules. It passed £1bn in annual profit for the first time in the prior year.
Shares rose 2% in early trading on 17 September, making Next the top riser on the FTSE 100, the index of London's largest listed companies.
Victoria's Secret & Co., the US business linked to Next's UK rights, reported first-quarter 2026 net sales of $1.560bn, up from $1.353bn, an increase of 15%. Second-quarter net sales were $1.611bn, up from $1.459bn, an increase of 10%. SEC filing The US company raised its full-year sales outlook to between $7.1bn and $7.18bn. Wall Street Journal
The September update followed other announcements. Next issued a trading statement on 5 August and half-year results on 17 September. On 7 September it announced an Important Victory for NEXT in Equal Pay Appeal.
The broader context here is guidance discipline. Four upgrades in one financial year point to demand beating forecasts again and again, or to starting with cautious numbers that are later raised. That habit rewards steady delivery, but it leaves open how much room remains in the second half.
Looking at what this means for UK discretionary retail, or shops selling non-essentials, two threads stand out. Weather sensitivity is still large. Two warm summers flattered sales, and the same link can cut the other way. Portfolio breadth is the second thread. Stores plus licensed brands and minority stakes spread sales across prices and types, like carrying shopping in several bags rather than one. That mix can smooth a weak patch in one area, while making it harder to trace where growth came from.
