LONDON – British fashion and lifestyle retailer Next plc (NXT.L) once again raised its full-year profit outlook after reporting stronger-than-expected third-quarter sales, marking the fourth upgrade in just eight months. The latest results highlight the company’s resilience amid a challenging retail environment and its ability to outperform both domestically and internationally.

Third-Quarter Sales Surge Past Expectations

Next reported a 10.5% increase in full-price sales for the quarter ending October 25, surpassing market forecasts. The company’s shares jumped 5% on Wednesday, extending their 2025 gains to nearly 48%, as investors welcomed another set of robust results.

According to the retailer, sales outperformed expectations in both the UK and overseas markets, driven by improved stock availability, higher digital marketing spend, and continued consumer demand across its brand portfolio.

Profit Forecast Raised Again

Following the upbeat quarter, Next raised its pretax profit guidance for the financial year ending January 2026 to £1.135 billion ($1.52 billion), up from its previous forecast of £1.105 billion. The figure represents a notable increase from £1.011 billion reported in 2024/25 — the first time the company surpassed the £1 billion profit milestone.

This marks the fourth upward revision to Next’s annual profit outlook in 2025, underlining the company’s consistent performance despite broader concerns about the UK economy and retail spending pressures.

Resilient Sales Performance Across Markets

Domestic sales grew 5.4% during the quarter, supported by better inventory management and stronger stock levels compared with last year. In 2024, Next had faced supply chain disruptions from Bangladesh and freight bottlenecks, but those issues have since eased.

Overseas sales surged 38.8%, reflecting the company’s ongoing investment in digital marketing and international online expansion. Next’s e-commerce platform now reaches more than 70 countries, offering both its flagship label and over 700 third-party brands.

CEO Simon Wolfson’s Growth Strategy

Under the leadership of CEO Simon Wolfson, Next has transformed into one of the UK’s most diversified fashion retailers. The company operates more than 800 stores across the UK and Ireland, including brands such as Reiss, Joules, and FatFace, and continues to strengthen its online retail network.

Next’s performance is often seen as a barometer for UK consumer sentiment, given its broad customer base and mix of mid-market products.

Outlook: Strong Finish Expected Despite Economic Uncertainty

The company also raised its forecast for fourth-quarter full-price sales growth to 7.0%, up from previous guidance of 4.5%. Analysts note that the retailer could continue to benefit from rising real wages and a stabilizing inflation environment, although it remains sensitive to changes in interest rates and consumer borrowing costs.

“Next should benefit from further real wage growth in the UK, albeit it will remain somewhat sensitive to the employment outlook and cost of borrowing for the consumer,” said analysts at RBC Europe.

Stock Performance and Market Context

With its share price up nearly 50% year-to-date, Next remains one of the best-performing retailers on the FTSE 100 index in 2025. The company’s ability to navigate inflationary pressures, supply chain challenges, and shifting consumer trends has reinforced investor confidence.

As the retail sector braces for the upcoming UK budget in November, which may include new tax measures on property and consumer spending, Next’s sustained growth provides a rare bright spot in an otherwise cautious market.

($1 = £0.7451)