British fashion and homeware retailer Next plc has raised its sales and profit guidance following a better-than-expected performance in the third quarter, reinforcing its reputation as one of the UK’s most resilient retail groups.
In the thirteen weeks to 25th October 2025, full-price sales rose by 10.5% year-on-year, coming in US $ 95.6 million above the company’s forecast, which had projected 4.5% growth. UK sales increased by 5.4%, slightly below the 7.6% achieved in the first half of the year but still well ahead of expectations of 1.9%.
The company noted that while domestic growth had moderated compared to the “exceptional” first-half performance — aided earlier in the year by favourable weather and competitor disruption — sales remained stronger than anticipated. Next said it had underestimated the positive effects of improved stock levels, after last year’s supply chain was disrupted by delays in Bangladesh and global freight bottlenecks.
Overseas sales surged 38.8%, surpassing both the 28.1% recorded in the first half and the company’s guidance of 19.4%. This growth was attributed to better returns on digital marketing investments and improved stock availability following the consolidation of warehousing operations in Europe.
Looking ahead, Next raised its forecast for fourth-quarter full-price sales growth from 4.5% to 7%, adding approximately US $ 45.3 million to its revenue outlook. As a result, the company increased its full-year profit before tax guidance by US $ 37.7 million, to around US $ 1.43 billion.
Total group sales guidance has also been revised upward by US $ 188 million, which includes US $ 28.5 million from adjusted markdown timings — with more surplus stock moved into the September mid-season sale rather than the Christmas sale — and US $ 18.6 million from additional clearance sales. Total surplus stock in the second half is expected to increase by around 3.5%.
Next, which operates 899 stores, continues to perform strongly despite cost-of-living pressures and elevated operating costs, remaining a steady outperformer within the UK retail landscape.
Julie Palmer, Partner at Begbies Traynor, said the results once again underscored Next’s status as “the gold standard in UK retail”. She added that the company’s combination of “tight cost control, effective stock management and a well-balanced online and store offer” continues to drive success. Palmer further noted that at a time when many retailers are under pressure from rising costs, subdued consumer confidence and fiscal uncertainty, Next appears “largely insulated from such headwinds”.
