Next posted a profit boost in its first half results, even as chief executive Simon Wolfson warned of “anaemic” growth prospects for the UK economy.
For the six months to July, pre-tax profits increased by 13.8% to about US $ 637 million, while group revenues rose 10.3% to around US $ 4.02 billion. The uplift was supported by favourable weather and the disruption to rival Marks & Spencer following its cyberattack earlier this year.
The retailer maintained its full-year profit forecast of just over US $ 1.27 billion but cautioned that momentum was expected to slow in the second half of the year.
Wolfson warned Chancellor Rachel Reeves that the outlook remained subdued, citing “anaemic” economic growth and a downturn in employment. He said the medium- to long-term prospects for the UK economy did not appear favourable, noting that progress was being held back by “declining job opportunities, new regulation that erodes competitiveness, government spending commitments that are beyond its means, and a rising tax burden that undermines national productivity.”
He further added that employment, “particularly at the entry level,” faced the “triple pressure of rising costs, increasing regulation, and displacement through mechanisation and AI.”
On the interim results, Wolfson said the company’s performance had been helped by one-off factors unlikely to be repeated, while the wider economy was “likely to weaken going forward.”
Next has been expanding its portfolio in recent months, acquiring maternity brand Seraphine earlier this year. The company bought Seraphine’s branding and intellectual property after the label fell into administration in July.
