Next nudges up profit outlook but takes extra costs from Middle East

Wed, 06th May 2026 08:47

(Alliance News) - Next PLC on Wednesday raised annual pretax profit guidance after a strong start to the financial year, although growth slowed during the period as the impact of the Middle East war and tougher comparatives took effect.

The Leicester-based clothing and homewares retailer said full price sales were up 6.2% in the 13 weeks to May on last year, and ahead of the group's 4.0% forecast.

This reflected a strong start to the period, with sales in the first five weeks of the financial year up 11.8%.

The stronger sales came before the conflict in the Middle East started and last year's UK sales strengthened as a result of unusually warm weather, the FTSE 100 listing explained.

Next said the additional GBP28 million sales adds GBP8 million to profit, taking guidance for the full-year to GBP1.22 billion, raised from GBP1.21 billion. This would be up slightly from GBP1.19 billion posted in the 52 weeks to January 31, 2026.

UK sales rose 4.4% on-year, ahead of group expectations of 1.3%, with online up 10.1% and retail down 3.4%. Growth weakened, as expected, as it approached tougher year-on-year comparatives, Next said.

International sales grew 12.8% on-year. Next said the Middle East crisis caused considerable disruption to service in the region with trade recovering towards the end of the period as delivery services returned to normal.

The Middle East crisis is now expected to cost Next GBP47 million compared to a prior forecast of GBP15 million, mainly reflecting higher transportation and fuel costs.

As a result, Next said it plans price increases overseas of "no more" than 8% which will be implemented in May. Extra costs in the UK will be offset by cost savings and margin gains with no price rises projected over and above the 0.6% forecast at the beginning of the financial year.

For the second quarter, Next forecast full price sales growth of 4.0%, with UK sales seen up 1.0% and International up 17.0%.

For the financial year, Next forecast full price sales growth of 5.0%, up from 4.5% before, with UK sales seen up 2.8% and International up 14.4%.

Guidance assumes fuel costs remain at or around their current levels and disruption in factories and global transport networks neither worsen or improve.

Shares in Next rose 0.6% to 12,705.00 pence each in London on Wednesday morning.

By Jeremy Cutler, Alliance News reporter

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