Next Raises Profit Guidance to £1.21 Billion

The Tip Desk · April 16, 2026 · 2 min read

The UK retailer expects pre-tax profit to rise 4.5% in the year to January 2027.

Next Plc, a UK based retailer of clothing, homeware and beauty products, increased its pre-tax profit guidance for the year to January 2027 to £1,210m, a 4.5% increase. The company maintained its full price sales growth guidance for the same period at 4.5%.

For the 52-week period ended January 2026, the company reported a headline pre-tax profit of £1,158m, up 14.5% from £1,011m the previous year. Statutory profit before tax for the 53-week period was £1,193m. Post-tax earnings per share rose 17% to 744.2p.

Growth was driven largely by online channels. Online International profit rose 51.2% to £198m, while Online UK profit increased 14.8% to £524m. In contrast, Retail Stores profit fell 4.4% to £226m. The Total Platform segment, which includes investments in brands such as Reiss and FatFace, reported a profit of £82.3m, compared to £66.2m in the prior year.

Next generated £792m of surplus cash before investments and distributions. This figure included a £54m exceptional inflow from a land sale at Waltham Abbey and £24m from the 53rd week. The company returned £839m to shareholders during the year, comprising £286m in ordinary dividends, £131m in share buybacks, and a £421m B Share Scheme capital distribution.

Net debt excluding lease liabilities increased by £53m to £713m in the year to January 2026. The company plans to increase net debt by £77m to reach £790m by January 2027 to maintain a debt:PBIT ratio of 0.63.

Management flagged potential headwinds from conflict in the Middle East, a region that represents approximately 6% of total turnover. The company has accounted for £15m in additional costs related to fuel and air freight, assuming the disruption lasts three months. While these costs are currently offset by savings, the company said it will pass costs through as higher pricing if they persist beyond the next three months.

Next intends to return £500m to shareholders through share buybacks, special dividends, or capital return in the coming year. The company estimates that these buybacks will boost pre-tax EPS by 1.4% in 2026/27, provided the share price does not exceed a limit of £131.