Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Next’s Christmas trading update gave investors plenty to be jolly about, capping a solid year 2025 for the UK fashion powerhouse.
“In the nine weeks to December 27, full-price sales rose by 10.6 per cent, ahead of the group’s previous upgraded guidance for 7.0 per cent growth.
“The better-than-expected finish to 2025 saw the UK fashion powerhouse upgrade its profit guidance once again.
“Full-year pre-tax profits are now expected to come in at around £1.15bn, marking the third profit upgrade in a little over five months.
“Unwrapping some of the headline figures, sales growth continues to be driven by its online channel, which already accounts for more than half of group sales.
“Within that, overseas sales have continued to grow at an eyewatering pace, up 38.3 per cent over the festive period, helping to buoy the more sluggish growth of just 1.4 per cent in its retail stores.
“Next also gave a sneak peek into its outlook for the new financial year, with pre-tax profits forecast to grow by 4.5 per cent to around £1.2bn.
“The slowdown comes as this year’s numbers have benefited heavily from both favourable summer weather and major disruption at M&S.
“But with Next’s track record of under-promising and over-delivering, this growth target looks a touch conservative.
“Next remains one of the brightest sparks in the UK retail scene, and there’s potential for more success if it can continue nailing its overseas expansion.”
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