Sunshine puts rosy glow on Next’s profit forecasts

The warmer weather has put a rosy glow on Next’s financial performance with the retail giant increasing its profit forecast for this year.

The retail giant has been a consistently strong performer on the high street and is seen as a bellwether for the sector and consumer confidence.

It has nudged its profit guidance up by £14m to £1.08bn after a strong first quarter.

Full-price sales in the 13 weeks to 26 April rose by 11% and outperformed its forecasts by £55m.

The uplift was largely attributed to unseasonably warm weather, which drove earlier-than-usual demand for summer-weight products.

Despite the bumper start, the Enderby-based company hasn’t revised its sales guidance for the rest of the year, suggesting some Q2 purchases may have been pulled forward.

The update follows a milestone moment in March, when the retailer reported a 10.1% jump in annual pre-tax profits to £1.011bn for the year ending January 25, 2025, breaking the billion-pound barrier for the first time.

Revenue also climbed 11.4%, rising from £5.49bn to £6.12bn.

The record-breaking announcement sent the firm’s share price soaring 6% at the time, reaching an all-time high.

Its latest update showed Retail stores outperformed expectations, with sales up 5.2%, though the company expects this to level off in the months ahead.

Online sales also beat projections, with international sales leading the charge, up 29.6%.

The company will provide its next trading update, covering the 26 weeks to 26 July 2025, on 31 July.