NEXT is predicted to publish rising earnings subsequent week regardless of a string of prices will increase hitting retailers and broader issues about UK shopper confidence.
The retail big will reveal its first quarter outcomes subsequent week, scorching on the heels of earnings of greater than £1 billion final 12 months.
NEXT, which has greater than 450 shops throughout the UK, reported pre-tax earnings of £1.01 billion for the 12 months to January, up 10% in contrast with the earlier 12 months.
Its boss, Lord Simon Wolfson, stated buying and selling within the opening a part of this monetary 12 months had been higher than anticipated on the current replace.
NEXT raised its steerage for 2025-26 in response, pencilling in gross sales development of 5% to £5.3 billion and earnings up 5.4% to £1.07 billion.
However NEXT, like different retailers, has needed to deal with a slew of value will increase because it posted its full-year ends in March.
Nationwide insurance coverage contributions (Nics), a tax which makes it dearer to make use of folks, went up in April, together with the minimal wage.
In the meantime, UK shopper confidence has additionally fallen to the bottom degree in additional than a 12 months amid issues that Donald Trump’s commerce tariffs might push up dwelling prices, in response to a current ballot by knowledge firm GfK.
And NEXT, which sells its merchandise on-line to the US market, might additionally see a knock-on impression from Trump’s tariffs on gross sales.
Russ Mould, an analyst at AJ Bell, stated NEXT has a “knack of exceeding expectations – a knack it demonstrated once more in March when chief govt Simon Wolfson nudged up expectations for full-price gross sales and pre-tax earnings for the 12 months to January 2026”.
He added: “That constructive steer has helped take Subsequent’s shares to new all-time highs, regardless of wider inventory market volatility.”
Shares have been up 27% for the year-to-date on Friday.
NEXT has already stated it must elevate costs by round 1% to offset the impression of Nics and minimal wage will increase.
Its first quarter outcomes come amid a string of cyber assaults in opposition to UK retailers, with Marks & Spencer and Harrods dealing with points in current days.
As of Friday morning, M&S was unable to course of on-line orders after shutting down components of its on-line techniques to take care of a “cyber incident”.
M&S first reported the problem over the Easter weekend however has seen its operations impacted for greater than per week.
