# Next delivers latest profit outlook hike after festive trading boost

By Russ Mould — 2026-01-06

Russ Mould, investment director at AJ Bell, said: “Traditionally one of the first to report on Christmas trading, Next is sometimes pegged as a seasonal bellwether for the retail sector.

“However, the strength of its business relative to some of its rivals means any comparison may not be too instructive.

“Next had a merry little Christmas buoyed by strong third party and international sales.

“The company is warning of pressures on the domestic jobs market feeding through to sales and is guiding for a significant easing in the blockbuster growth it has been enjoying overseas.

“To what extent this is the usual massaging of expectations or a genuine concern about the outlook will only become apparent over the course of the year.

“One challenge Next faces is a rise in labour costs as a higher national living wage comes into force.

“As usual, Next shows refreshing clarity about what investors can expect in terms of capital returns and this looks generous, which may help to sustain its appeal to investors through any turbulence in 2026.

“Ultimately, Next is an example of excellence in the retail space.

“It has levers to pull to achieve growth even if the outlook in the UK remains uncertain, not least acquisitions, and it would not be a surprise if it beat conservative guidance again.”

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