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Next lifts profit guidance after strong Christmas trading and sets measured growth outlook

Story Highlights
  • Next beat Christmas sales expectations, lifting full-year profit and earnings guidance.
  • Strong cash generation underpins major capital returns as Next targets moderate growth next year.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Next lifts profit guidance after strong Christmas trading and sets measured growth outlook

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Next plc ( (GB:NXT) ) has issued an announcement.

Next plc reported robust Christmas trading, with full-price sales up 10.6% in the nine weeks to 27 December, well ahead of previous guidance, driven by resilient UK demand and a 38.3% surge in international online sales helped by higher marketing spend and improved stock utilisation through Zalando’s ZEOS platform. The company raised full-year 2025/26 profit before tax guidance by £15m to £1.15bn, implying a 13.7% year-on-year increase and EPS growth of 16.1%, and highlighted strong cash generation that will fund £131m of buybacks, ordinary dividends and a proposed £421m B Share capital return, alongside a managed increase in net debt. Looking ahead to 2026/27, Next expects growth to moderate, guiding to 4.5% full-price sales and profit growth and 4.3% EPS growth, with international online continuing to outpace a slower UK, and surplus cash likely to be returned via special dividends or other capital returns given current share price levels.

The most recent analyst rating on (GB:NXT) stock is a Hold with a £134.00 price target. To see the full list of analyst forecasts on Next plc stock, see the GB:NXT Stock Forecast page.

Spark’s Take on GB:NXT Stock

According to Spark, TipRanks’ AI Analyst, GB:NXT is a Outperform.

Next plc’s strong financial performance and positive technical indicators are the primary drivers of its stock score. While the valuation is fair, recent corporate events provide a mixed impact, with positive actions like share acquisitions and land sales being offset by significant executive share sales.

To see Spark’s full report on GB:NXT stock, click here.

More about Next plc

Next plc is a UK-based clothing, footwear and homewares retailer operating through a combination of physical stores and a significant online platform. The group also runs an international online business and offers third‑party brands via its LABEL segment, alongside a consumer credit arm, NEXT Finance. Its international growth is increasingly driven by partnerships with European aggregators and platform integrations that enhance stock availability and reach.

Average Trading Volume: 359,268

Technical Sentiment Signal: Buy

Current Market Cap: £15.73B

For an in-depth examination of NXT stock, go to TipRanks’ Overview page.

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