NEXT Reports Strong First-Half Performance Amid Cautious UK Outlook
NEXT plc reported a strong performance in its first-half results with total sales rising 9%, full-price sales increasing by 7.7% (exceeding expectations of 4%), and profit climbing 10.5%. The company plans to raise its interim dividend by 12.6% to 98 pence per share, reflecting confidence in earnings growth. International operations outperformed the UK with full-price sales growing 24%, driven largely by Europe's contribution of nearly £100 million and a boost from Zalando following integration. Owned brands and licenses (WOBL) saw significant gains—33.5% in the U.K. and 82% internationally. However, retail performance was weaker with full-price sales declining slightly. Despite strong international growth, NEXT has become more cautious about UK consumer spending for the second half due to inflationary pressures on fuel and other costs. The company maintained its annual guidance of a 6.7% sales increase and £1.255 billion in pre-tax profit.
Topics: dividend_announcement profit_increase sales_growth uk_outlook