Business
Trading Statement
Next PLC has announced strong Christmas trading, with full price sales up 10.6% in the nine weeks to December 27th, exceeding guidance and leading to an increase in full-year profit before tax guidance by £15 million to £1,150 million, representing a 13.7% increase year-on-year. For the upcoming year ending January 2027, Next forecasts full price sales growth of 4.5% and profit before tax of £1,202 million, with £768 million available for shareholder distributions, representing 4.8% of the current market capitalization. The company also expects to generate £474 million in surplus cash for the current year after ordinary dividends, with a proposed £421 million capital return via a B Share Scheme. Disclaimer*
About this update from Next Plc
[{"type":"text","content":"\n\n\nTrading Statement - 6 January 2026\nHEADLINES\nChristmas Trading and Full Year Guidance - Year Ending January 2026\n\n\n\n\n·\n\n\nIn the nine weeks to 27 December, full price sales1 were up +10.6% versus last year, which compares to our guidance for the quarter of +7.0%\no UK sales were up +5.9%\no International sales were up +38.3%\n\n\n\n\n·\n\n\nThis over-achievement, along with additional sales forecast in January, adds £51m to full price sales and we are increasing guidance for full year profit before tax2 by +£15m to £1,150m \n\n\n\n\n·\n\n\nProfit before tax is now forecast to be up +13.7% versus last year, and post-tax Earnings Per Share (EPS) up +16.1% \n\n\n\n\n1 Full price sales include all items sold in NEXT Retail Stores, NEXT Online including third-party brands, and NEXT Finance interest income, but excludes Sale events, Clearance, Total Platform commission and subsidiaries' sales. \n2 NEXT Group profit before tax excludes: (1) the cost of brand amortisation, (2) the profit attributable to shares that we do not own in subsidiary companies, (3) an exceptional £16m gain from the sale of land in November 2025 and (4) profit from this year's 53rd week. Note, last year also excluded an exceptional, non-cash, loss relating to the closure of our defined benefit pension scheme. \nInitial Guidance for the Year Ahead - Year Ending January 2027\n\n\n\n\n·\n\n\nFull price sales growth forecast to be up +4.5%\n\n\n\n\n·\n\n\nGroup profit before tax forecast to be £1,202m, up +4.5%\n\n\n\n\n·\n\n\nAssuming the Group makes no further acquisitions, cash available for distribution to shareholders, including ordinary dividends, is expected to be £768m. This represents 4.8% of our current market capitalisation \n\n\n\n\n·\n\n\nAnticipated shareholder distributions, combined with forecast EPS growth of +4.3%, would deliver total shareholder return (at a constant P/E ratio) of 9.1%\n\n\n\n\nThe Remainder of this Statement\nThe remainder of this document is divided into two parts: Part 1 focuses on the current year and Part 2 gives our initial guidance for sales, profit and cash flow in the year ahead.\n \nPART 1: THE CURRENT YEAR \nFull Price Sales Performance to 27 December 2025\nThe table below sets out the full price sales performance for the nine weeks to 27 December...