Next plc has raised its profit forecasts for 2026 after exceeding expectations in the second quarter, driven in part by strong sales performance amid recent favorable weather conditions. The British retail company now anticipates pre-tax profits of £1.24 billion for the year, representing an upward revision of £25 million from earlier projections and a 7.3% increase compared to the previous year.

The group also adjusted its total sales target, which includes markdowns and investments, from £7.3 billion to £7.5 billion. This growth was supported by a 2.8% rise in UK sales during the second quarter and a significant surge in international purchases, which increased by nearly 37%.

These financial improvements have led Next to increase its plans for returning value to shareholders. The company announced intentions to repurchase £524 million worth of its own shares, signaling confidence in its ongoing profitability and financial position.

The performance boost has been linked to various factors, including favorable weather patterns such as the recent heatwave that contributed to increased consumer spending on seasonal clothing. This has helped sustain momentum in both domestic and overseas markets despite broader economic uncertainties.

Next’s management cited strong operational execution and continued demand for its product range as central to the improved outlook, while also emphasizing strategic investments in the business that support growth and profitability.

Overall, the revised forecasts and buyback plans reflect Next’s positive outlook for 2026, underpinned by robust sales growth across multiple markets and a commitment to enhancing shareholder returns.