Next Plc (LON:NXT) on Thursday reported a 13.8% rise in first-half profit to £515 million, lifted by strong online and international sales that offset weaker performance in retail stores.
Group sales for the six months to July 2025 grew 10.3% to £3.25 billion from £2.95 billion a year earlier.
Full price sales advanced 10.9%. Statutory revenue climbed 9.9% to £3.15 billion. Profit after tax increased 13.4% to £387 million, while earnings per share rose 16.8% to 330.2p. Statutory profit before tax was £509 million, up 17.8%.
The online business drove the gains. UK online sales rose 11.1% to £1.27 billion, with profit up 17.5% at £230 million and margin improving to 17.6% from 16.6%.
International online sales jumped 32.7% to £612 million, with profit rising 35% to £93 million. Growth was strongest in the United States, where sales increased 58%, and in Europe, up 34%.
Retail stores delivered slower growth. Sales rose 3.7% to £899 million, while profit slipped 1.1% to £97 million. Net margin fell to 8.9% from 9.4%, as higher National Living Wage and National Insurance costs weighed on results.
Next Finance, the group’s credit arm, recorded £151m in interest income, up 0.5%. Profit increased 4.6% to £101 million, with default rates improving to 2.2% from 2.8%.
Investments and Total Platform services, which include partnerships with Reiss, Joules and FatFace, posted £27.9 million in profit, up 20.5%. The division is expected to deliver £80 million for the full year. By geography, UK product sales rose 7.9% to £2.17 billion, while international product sales surged 32.7% to £612 million. Overall product sales climbed 12.5% to £2.78 billion.
Next maintained its guidance for the year ending January 2026. The UK-based retailer forecast full-price sales to rise 7.5% to £5.44 billion, with profit before tax reaching £1.11 billion, up 9.3% year on year. Post-tax earnings per share are projected at 714.1p, an increase of 12.2%.
International operations are set to remain the key driver, with online sales forecast to grow 23.8% for the year. UK retail sales are expected to decline 0.6% in the second half, partly offset by a 3.6% gain in UK online.
The Leicester-headquartered company expects to generate £694 million in surplus cash this year before investments and shareholder distributions.
Net debt is forecast at £720 million, equal to 0.6 times profit before interest and tax. A 53rd trading week is expected to add about £20 million in profit, which will be reported separately.
“In spite of the challenges presented by the UK economy, NEXT is in a good place, with multiple opportunities for growth, both in the UK and overseas,” the company said in a statement.
“Our enthusiasm is tempered by the knowledge that the first half was boosted by factors that are unlikely to continue, and the belief that the UK economy is likely to weaken going forward.”
