LONDON – British fashion retailer Next has raised its full-year profit forecast for the second time in two months, following an impressive 11.4% rise in first-quarter full-price sales. The unexpected surge in sales was largely attributed to a spell of warm weather, which boosted demand for summer clothing ranges.
Despite the strong start to the year, the company remains cautious and has decided not to revise its sales guidance for the rest of 2025. Next noted that the unusually warm weather likely caused some sales to shift from the second quarter to the first.
“We believe much of the over-performance in the first quarter has been the result of warmer weather, which has benefited the sale of summer-weight clothing,” the retailer stated. “It is likely that some of these sales have been pulled forward from Q2.”
The retailer also expressed concern about sales in the second half of the year, citing potential economic pressures from April’s tax increases. Additionally, tougher comparisons with last year’s performance may challenge growth in the latter part of 2025.
Next now forecasts a full-year pretax profit of £1.08 billion ($1.4 billion) for the year ending January 2026, up from its previous estimate of £1.066 billion. This marks substantial growth compared to the £1.011 billion profit recorded for 2024/25, the first time the company surpassed the £1 billion milestone.
In the wake of this announcement, shares in Next climbed 2%, bringing its year-to-date gains to an impressive 32%.
The retailer reported better-than-expected results in its first quarter ending April 26, both in the UK and internationally. Sales growth in physical stores rose 5.2%, outperforming expectations, although Next acknowledged that favorable weather had disproportionately benefited in-store sales. It expects store sales to stabilize and remain “broadly flat” for the rest of the year.
Online sales also showed strong growth, with UK online sales increasing by 8.9% and international online sales surging 29.6% during the quarter. For the full year, Next predicts full-price sales will grow by 6.0%.
Notably, Next’s performance in the first quarter coincided only slightly with a period of disruption at rival Marks & Spencer. Since April 25, M&S has been unable to process online clothing orders due to a cyberattack, with analysts estimating a daily revenue loss of approximately £4 million from halted online sales.
While Next benefited from early demand for summer collections, it remains cautious about the longer-term economic challenges ahead. However, its ability to adapt and deliver strong results across multiple sales channels highlights the company’s resilience and strategic execution in a competitive retail environment.
