UK fashion and lifestyle major Next plc has lifted its financial guidance for FY2025-26 following stronger-than-anticipated Christmas trading, citing resilient domestic demand and continued momentum in international online sales.
FY26 Upgrade: Strong Sales & Profit Momentum
For the year ending January 31, 2026, Next now expects:
- Full-price sales to reach £5.6 billion, up 10.7% YoY
- Total group sales to climb to £6.97 billion, rising 10.3%
- A 53rd trading week to add approximately £22 million to profit before tax and £20 million to cash flow
The improved outlook reflects steady UK consumer demand and robust digital expansion overseas, reinforcing Next’s multi-channel strength.
FY27 Guidance: Growth to Moderate
Looking ahead to FY2026-27, the retailer forecasts a more measured pace of expansion:
- Full-price sales projected to grow 4.5% to £5.86 billion
- Group profit before tax expected at £1.20 billion (+4.5%)
- Earnings per share (EPS) anticipated to rise 4.3%, assuming no share buybacks
- Total group sales forecast to increase 4.2%, slightly below full-price sales growth due to slower markdown activity
UK sales growth is expected to ease to 1.6%, reflecting tougher year-on-year comparisons, reduced weather-related boosts, easing competitor disruption benefits, and pressure in the UK employment market.
However, international online sales are still projected to grow strongly at 16.5%, albeit below the exceptional growth levels seen this year as marketing investment stabilises.
Assuming no acquisitions, Next estimates £768 million will be available for shareholder distributions in FY27, equivalent to roughly 4.8% of its market capitalisation. Combined with projected EPS growth, this suggests a potential total shareholder return of around 9.1%, assuming a stable price-to-earnings ratio.
The company will release its full FY26 results on March 26, 2026.
Next Acquires Russell & Bromley Brand & Prime London Stores
In a strategic move to expand its premium portfolio, Next Retail Limited has acquired the Russell & Bromley brand along with retail operations at its Bluewater, Chelsea and Mayfair stores.
The transaction follows the appointment of joint administrators from Interpath Advisory on January 21, 2026, under the UK Insolvency Act 1986. The administration covers:
- Russell & Bromley Limited
- Russell & Bromley Online Limited
- Farwig Limited
While physical stores continue to operate under administration, online sales have been temporarily suspended to facilitate the transition of the digital platform to Next.
Strategic Implications
The acquisition gives Next access to:
- A well-established British luxury footwear and handbag brand
- Prime London retail locations
- A premium customer base aligned with higher-margin segments
The move signals Next’s intent to strengthen its position beyond mass-market apparel into accessible luxury, while leveraging its proven online and operational infrastructure to revive and scale the brand.
Industry Takeaway
With upgraded earnings guidance, sustained online momentum, and a strategic luxury brand acquisition, Next is reinforcing its resilience in a cautious UK retail environment. The combination of disciplined cost control, digital strength, and selective acquisitions positions the retailer for steady, sustainable growth heading into 2027.
(Apparel Times BD Desk)
**Sources: Company filings, RNS release, and UK media reports.**
