Next raised its sales outlook for financial year 2026/27 after international online full-price sales drove all of its latest sales outperformance, while higher overseas operating costs absorbed the resulting profit gain.
In its Nov. 5 trading statement, Next said full-price sales rose 8.1% over the 13 weeks ending Oct. 31. That was £33 million above the company's second-half sales guidance for 5.8% growth. The year-over-year comparison adjusts for the previous financial year's 53rd week.
International online full-price sales rose 32.2%, above Next's 20.5% forecast; direct sales gained 32.7%, and third-party aggregator sales increased 31.3%. Marketing spending was 67% higher than a year earlier, against 42% guidance. Next said more-profitable-than-expected marketing contributed to NEXT Direct's outperformance.
The domestic picture weakened: UK full-price sales rose 2%, compared with 3.6% in the first half. UK online sales growth was 4.4%, down from 7.4%, and store sales declined 1.7%. Next partly attributed softer demand to unusually warm weather in September.
Next said its international business accounted for all of the sales outperformance. The beat added £5 million to profit, but higher costs in international operations offset that gain, leaving its profit forecast unchanged.
The company now expects FY 2026/27 group sales of £7.54 billion, up 7.6%, compared with its previous projection of £7.49 billion and 6.9% growth. It kept its full-year profit-before-tax forecast at £1.255 billion, an 8.4% increase.
Next said international operating costs partly reflected EU tariffs on online orders fulfilled from non-EU stock. After other savings, it expects about £5 million in net tariff costs for the year and plans operational changes and selective, modest EU price increases to mitigate them. The company's next sales update is scheduled for Jan. 6, 2027, covering sales through Dec. 26, 2026.
