Full-price sales at Next were up +10.9% in the six months to July 2025, the retailer reports, with total group sales (including markdown sales and subsidiaries) up +10.3%. Next Group PBT stood at £515m (up +13.8%).
"In spite of the challenges presented by the UK economy, Next is in a good place, with multiple opportunities for growth, both in the UK and overseas," the retailer reports.
"Our enthusiasm is tempered by the knowledge that the first half was boosted by factors that are unlikely to continue, and the belief that the UK economy is likely to weaken going forward."
Next expects full-price sales growth in the second half to be up +4.5% YoY, leaving its full year pre-tax profit unchanged at £1,105m (up +9.3% YoY).
"We anticipate that growth in UK sales in the second half (+1.9%) will be lower than the first half (+7.6%), for the following three reasons. We expect UK employment opportunities to continue to diminish as we enter the second half, with the effects of April’s National Insurance changes continuing to filter through into the economy as the year progresses. We believe that this will increasingly dampen consumer spending in the second half of the year.
"The comparative numbers in the second half of last year were much stronger than the first half. For reference, in H1 last year the UK business was up +0.7%, and in H2 it was up +4.3%.
"In the UK, we believe we exceeded expectations in Q2 as a result of better summer weather and trading disruption at a major competitor. We do not expect either of these factors to have a material effect in the second half."
In-store, despite positive LFL sales, margin moved backwards, mainly because of increases in the cost of the National Living Wage and National Insurance, says Next. Full-price sales were up +5.4% YoY (LFL full-price sales up +4.2%), and total sales (including markdowns) up +3.7% – yet the UK retail stores’ profit was £80m, down -1.4% YoY.
Online, full-price sales were up +9.2% YoY, total sales (including markdown sales) up +11.1%, and UK profits stood at £223m, up +17.7%.
This year, Next plans to open eight new stores and re-site six to new locations. In addition, two Home stores will convert to Fashion stores.
