29 October 2025
If you are covering the latest financial results from either Next or Adidas, please find below comments from Mamta Valechha, consumer discretionary analyst at Quilter Cheviot:
Next
“Next has produced a strong set of results in its latest market update, beating expectations and raising its guidance. Full-price sales were up 10.5%, coming in well ahead of what was expected (7.5% to 8.5%). Much of this growth continues to be from Next’s online offering, with that channel continuing to grow ahead of physical stories in the UK. Furthermore, within the online sales, non-Next branded lines grew faster than its own brand. The UK was said to have benefited from better stock availability compared to last year which was impacted by disruptions in Bangladesh and constraints in freight capacity.
“In the International business, sales well outpaced guidance, driven by effective marketing, and better stock availability and inventory management given the integration of its European warehousing into Zalando.
“Next upped their Q4 sales guidance to 7%, from 4.5% previously, and raised their profit guidance for the full year by 3%. These are strong upgrades and shows the business is executing well in what is a tough consumer environment. The share price remains a little expensive compared to recent history, but results like these suggest that is more than warranted. The changing profile of the business into an online powerhouse gives Next diversified growth avenues, consistent performance and strong execution by management.”
Adidas
“Adidias pre-released headline numbers last week and upgraded guidance, and today provided more incremental information on growth product wise. Sales were up 12% in the third quarter, with broad-based, double-digit growth across divisions, categories and channels, and most markets except for the US which was up in the high single digits.
“By category, Footwear sales were up 11%, with the offering continuing to get broader and deeper. When it comes the Terrance franchise, which includes the very popular Sambas, whilst it is maturing, demand still remains healthy backed by seasonal updates, as well as new colour ways, materials and collaborations. But at the same time the brand’s other franchises are expanding too such as Tokyo and Japan. And after relaunching one of its most iconic franchises earlier this year, Adidas has also begun to sequentially scale the Superstar.
“However, Adidas’ story is no longer just about lifestyle shoes. Running as a category is doing very well, up 30%, outpacing other categories, and to a lesser extent, football and training are doing well too. Apparel grew faster than footwear (16%) as a whole, as momentum continues to expand, led by creating locally relevant apparel.
“While tariffs and currency headwinds are hampering the business a little, Adidas has done well to improve its gross margin and this has resulted in an upgrade to guidance. The focus now shifts to 2026 guidance, which will be a year of sporting events, with the Winter Olympics right at the beginning, and the Football World Cup giving Adidas plenty of opportunities to capture the hearts and minds of consumers.”
