Next forecasts bigger profits after hot weather lifts sales

By the Editorial Team · Friday, September 18, 2026

Next raised its full-year pre-tax profit forecast to £1.26 billion, driven by robust sales growth, cost-saving efforts, and a boom in international markets despite a slight decline in UK own-brand sales. The company’s focus on expanding its online platform and adapting to changing consumer behaviors positions it for continued resilience amid economic challenges and slower physical store growth.

Next, the UK-based clothing and homeware retailer, has raised its full-year profit forecast for the fourth time this year, citing stronger-than-expected sales boosted by unusually warm weather and cost-saving measures. The FTSE 100 company now anticipates pre-tax profits of £1.26 billion, an increase of £12 million from its previous estimate.

The company reported a 9% rise in group sales to £3.54 billion for the six months ending July or early August, with pre-tax profits increasing between 10.5% and 11.2% to approximately £566 million, exceeding market expectations. International sales expanded notably, growing by about 24%, while UK sales edged up by 4%. However, sales of Next’s own brand in the UK declined slightly by 0.5%, or £7 million, amid a challenging retail environment.

Next attributed part of its performance to two consecutive warm summers in the UK, which unexpectedly boosted demand, especially for summer clothing. The company also pointed to successful cost-cutting initiatives, particularly in warehousing and logistics, and an increase in advertising spend overseas. Despite the strong results, the retailer lowered its sales growth forecast for the UK from 2.8% to 2% for the six months to the end of January, reflecting concerns over the ongoing inflationary pressures and subdued consumer spending.

Chief Executive Lord Simon Wolfson highlighted the complex factors influencing the company’s progress, stating that the success was due to a combination of group-wide initiatives rather than a single strategy. He also acknowledged the challenges posed by rising living costs, higher mortgage interest rates, and a weak employment market, which could dampen future performance. Wolfson warned that the government’s large public spending and debt levels might necessitate tax increases that could further restrict growth.

Analysts noted that Next’s ability to adapt to changing market conditions, including the shift toward online shopping and its development of a "Total Platform" service—where the company manages e-commerce, warehousing, and delivery for third-party brands—has helped maintain its competitive position despite broader retail difficulties. This service has been identified as a potential area for further growth and returns.

While Next’s own branded sales in physical stores have shown signs of slowing, especially in menswear, the company remains optimistic about the long-term prospects of its online business and international expansion. Lord Wolfson indicated that brick-and-mortar store sales are expected to decline gradually as online channels continue to grow.

Shares in Next rose by 2.5% following the announcement, reflecting investor confidence in the retailer’s resilience despite economic headwinds. Over the past year, Next’s shares have climbed by 23%, underscoring its status as one of the stronger performers on the UK high street.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.