Next first-half profits up 13.8% but cautious on growth outlook

Fashion retailer Next a 13.8% rise in first half profit and stuck to its full year profit forecast but said it remained cautious about second half trading, expecting UK sales growth to slow.

Fashion retailer Next reported a 13.8% rise in first half profit and stuck to its full year profit forecast but said it remained cautious about second half trading, expecting UK sales growth to slow.

The FTSE 100 company said on Thursday it expects employment opportunities to continue to diminish in its second half to end-January 2026, with the effects of April's employer tax increases in Britain continuing to filter through into the UK economy, dampening consumer spending.

Next has around 460 stores in the UK and Ireland and an online presence in over 70 countries selling the Next brand and more than 700 other brands. 

Next said it still expects second half full price sales growth to slow to 4.5%, versus growth of 10.5% in its second quarter when it benefited from a cyberattack at rival Marks & Spencer MKS.L.

Next maintained its forecast for full year pretax profit of £1.105 (€1.27bn), up from £1.011bn (€1.17bn) in 2024/25.

Pretax profit was £515m (€493m)  in its first half to end July.