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Next defies retail gloom with strong Q2 and upgraded guidance

Date: 31 July 2025

1 minute read

31 July 2025

If you are covering Next’s Q2 trading statement, please find comments below from Mamta Valechha, consumer discretionary analyst at Quilter Cheviot:

“Next has once again delivered a beat-and-raise quarter, with full-price sales rising 10.5% - well ahead of management’s guidance and investor expectations. The UK performance benefitted from warmer weather boosting seasonal ranges, alongside trading disruption at a major competitor, which we interpret as likely referring to M&S.

Internationally, sales were particularly robust, up 26%, driven by effective digital marketing campaigns. As a result, the group has upgraded full-year guidance, now expecting full-price sales growth of 7.5% and profit up 9.3%.

While the UK consumer outlook remains cautious – especially with April’s National Insurance changes – Next’s diversified channels and disciplined retail model position it as one of the more defensive and high-quality plays in the sector. Growth is increasingly being underpinned by overseas operations and its Next Label offering, offsetting domestic headwinds.”

Tim Skelton-Smith

Tim Skelton-Smith

Head of External Communications