Shares at Next are up by 6 per cent following the news that the retailer has exceeded £1bn profit for the first time. Group profit before tax to the end of January 2025 was up by 10.1 per cent to £1.011bn, with full-price sales rising 5.8 per cent and total Group sales (including subsidiaries) up 8.2 per cent. During the period, online sales grew by 3 per cent, whilst UK retail sales dropped by 2 per cent compared to 2023. Revenue also climbed 11.4 per cent to £6.12bn, up from £5.49bn.
Commenting on Next’s full year results, Julie Palmer, Partner at Begbies Traynor, said:
“Already viewed as best-in-class, Next has managed to defy the gloomy mood music hanging over the retail sector to deliver a record profit performance and raise its guidance once again.
“While Next’s size means it should emerge relatively unscathed from tax rises, questions will remain over the future of its bricks-and-mortar stores, particularly in the wake of recent high-profile closures. As its UK Retail division was the only segment to report negative results the market will be keeping a close eye on whether a brand that has been such a beacon of positivity for UK retail will revitalise or consider shrinking its physical presence.
“Smaller retailers across the UK are facing extreme challenges at the current time with some barely surviving as the gap between them and dominant retail giants widens. Can this headline figure spark some confidence in the sector?”
Next has also raised its guidance for 2025/26 from 3.5 per cent to 6.5 per cent due to strong performance, although it expects the UK economy to remain “challenging in the near term”.
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