Next stock gains as profit guidance lifted on strong half-year figures
Published on 09/17/2026 at 14:05 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Next plc stock (ISIN GB0032089863) is in focus after the British fashion and home retailer reported a double-digit profit increase for the 26 weeks to August 1, 2026 and raised its full-year profit guidance on September 17, 2026. According to Morningstar, pretax profit for the half-year rose 11 percent to GBP 566 million, while group pretax profit climbed 10 percent to GBP 569 million, with total revenue up 9.6 percent to GBP 3.45 billion compared to GBP 3.14 billion a year earlier.
Profit guidance raised on strong first half
As Morningstar reported on September 17, 2026, Next now expects full-year pretax profit of GBP 1.26 billion, slightly higher than the previous guidance of GBP 1.24 billion, which would exceed the GBP 1.19 billion achieved in the 52-week fiscal year to January 31, 2026. The same report highlights that full-year post-tax earnings per share guidance has been lifted to 820.8 pence from 812.9 pence, pointing to anticipated annual EPS growth of 10 percent.
According to Investing.com, the retailer raised its full-year profit before tax guidance by GBP 12 million to GBP 1.255 billion, up from a previous forecast of GBP 1.243 billion, reflecting GBP 5 million of higher expected sales and GBP 7 million of additional cost savings, mainly in warehousing. The same half-year period saw profit before tax of GBP 569 million, up from GBP 515 million in the comparable period of the prior year, and full-price sales rose 7.7 percent, underpinning the upgrade.
Half-year revenue and earnings move ahead of expectations
For the 26 weeks ending August 1, 2026, statutory revenue reached GBP 3.45 billion versus GBP 3.14 billion in the prior-year period, an increase of 9.6 percent, while total group sales rose 9.0 percent to GBP 3.54 billion, according to RTTNews. Statutory profit before tax for the same 26-week period rose to GBP 566.1 million from GBP 509.0 million, which represents an increase of about 11.3 percent year over year.
RTTNews further notes that statutory earnings per share for the half-year increased to 358.5 pence from 317.7 pence in the previous year, while NEXT Group post-tax earnings per share reached 370.4 pence, up from 330.2 pence. That implies EPS growth of approximately 12.2 percent compared to the prior year, underlining that profit growth outpaced sales growth in the half-year as margins edged higher.
According to FashionNetwork, full-price sales in the half to late July were up 7.7 percent, total sales including markdown increased 8.9 percent, and group sales, including subsidiaries, rose 9.0 percent to GBP 3.54 billion. The outlet reports that group profit before tax rose 10.5 percent to GBP 569 million, while profit after tax in the period increased 10.4 percent to GBP 427 million, confirming that revenue and earnings both exceeded the company’s earlier expectations.
Dividend and international growth provide additional support
The company also provided shareholder returns through a higher interim dividend. According to a regulatory news announcement summarized by Reuters, the board has declared an interim ordinary dividend of 98 pence per share for the half-year, up 13 percent from 87 pence in the comparable period a year earlier, with payment scheduled for January 4, 2027. Shares are set to trade ex-dividend from December 3, 2026, with a record date of December 4, 2026.
International and online growth have been key drivers behind the upgraded guidance. FashionNetwork notes that international online sales rose 23.9 percent in the half, significantly above the 14.7 percent growth originally anticipated, while total international sales increased by GBP 133 million, equivalent to 24 percent growth compared to the prior year. The same report highlights that total product sales are now more than 20 percent higher than two years ago, illustrating that Next has been able to use its brand and infrastructure to expand beyond the UK market.
At the same time, the company has been cautious about traditional store-based retail. FashionNetwork reports that full-price sales at Next UK retail stores for the Next brand fell by GBP 20 million, a decline of 3 percent, while third-party and wholly owned brands within stores partially offset this with growth of 17 percent and 19 percent respectively. The mix shift between physical stores and online operations is therefore an important strategic context for investors assessing the sustainability of the current margin profile.
Tempered UK outlook and risk factors
Even as guidance and profits are moving higher, management has acknowledged a more subdued outlook for UK sales. As Zonebourse summarizes, Next has lowered its full-year forecast for UK full-price sales growth from 2.8 percent to 2.0 percent, reflecting a more cautious view of domestic consumer demand, while keeping stronger expectations for international online sales where growth of 22 percent is now targeted.
According to the same Zonebourse report, Next expects full-price sales for the full year to grow 6.7 percent, up from 6.3 percent previously, and projects that full-year post-tax earnings per share will reach 820.8 pence, eight pence higher than its earlier target of 812.9 pence and roughly 10 percent above the previous year. The risk for investors is that slower UK store sales could limit upside in a tougher macroeconomic environment, even as international and online segments counterbalance domestic softness.
Investing.com also points to pressures within the group’s finance arm, noting that NEXT Finance profit fell 10.9 percent to GBP 90 million in the half-year, primarily due to higher funding costs. While this segment is smaller than the core retail operations, it highlights that not all parts of the business are moving in the same direction, adding a layer of complexity to the investment case at a time when interest rates remain relatively elevated compared to prior years.
Next stock holds near recent highs
In response to the upgraded guidance and strong half-year figures, Next stock has moved higher on the London Stock Exchange. Morningstar reported that the shares were up about 1.5 percent to 14,780.00 pence on September 17, 2026 after the results, compared with the wider FTSE 100 index gain of around 0.5 percent on the same trading day. A quotes overview from Zonebourse shows a last closing price of 14,560.00 pence on September 16, 2026, implying that the intraday move on September 17 left the stock trading roughly 1.5 percent above the latest official close.
The same Zonebourse data indicate that the stock’s recent performance includes a year-to-date gain of about 6.43 percent as of the September 16, 2026 close, with the price of 14,560.00 pence standing below the average analyst price target of 16,229.00 pence, suggesting upside potential from current levels if consensus expectations prove correct. From an investor perspective, the combination of mid-single-digit revenue growth, double-digit EPS growth and a higher interim dividend is now being reflected in a share price that is close to its recent 52-week highs on the primary London listing.
Key data on Next stock
- Company: Next plc
- ISIN: GB0032089863
- Ticker: NXT
- Trading venue: London Stock Exchange
- Price (as of September 16, 2026): 14,560.00 pence
- Market capitalization: 18,000,000,000 GBP (as of September 16, 2026)
- Sector / Industry: Consumer discretionary / Apparel and retail
- Index membership: FTSE 100
- Next earnings date: January 4, 2027
