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Earnings · Geopolitics · Guidance · Retail
Next PLC reported an "exceptional" financial year, with pretax profit increasing 21% to GBP1.19 billion, exceeding its GBP1.15 billion guidance, driven by strong international growth and improved clearance rates, while simultaneously nudging up future profit guidance despite Middle East disruption.
The Leicester, England-based retailer saw total group sales rise 11% to GBP7.00 billion, surpassing Visible Alpha consensus of GBP6.96 billion. Full price sales increased 11%, with UK sales growing 7% and international sales surging 35%.
Post-tax earnings per share jumped 17% to 744.2 pence, ahead of 737p consensus. Shares in Next PLC responded positively, climbing 5.5% to 12,695.00 pence in London.
For the financial year to January 2027, Next PLC maintains its full price sales growth guidance at 4.5% and revises UK sales growth up to 2.2% from 1.6%. International growth expectations are pared to 14.3% from 16.5% due to Middle East conflict disruption.
Pretax profit guidance for FY27 is nudged up to GBP1.21 billion, an GBP8 million increase from the January outlook. Next PLC accounts for GBP15 million in additional costs from the conflict, offset by savings elsewhere, ensuring no impact on guidance.
The company proposed a final dividend of 181p per share, up 15%, bringing the total payout to 268p, up 15%. Next PLC expects to return around GBP500 million to shareholders in financial 2027.
Next PLC Lifts Profit View, Cautions Middle East(current)
