6 May 2026
If you are covering Next’s latest financial results, please find below a comment from Mamta Valechha, consumer discretionary analyst at Quilter Cheviot:
“Next continued its strong run with a beat and raise with its first quarter trading statement, as it brushes off the impacts of the conflict in the Middle East. Full price sales were up 6.2%, ahead of the company’s own guidance of 4% and market expectations. UK sales in particular were much stronger than expected, up 4.4% compared to 1.3% forecast, while the International division grew 12.8%.
“If we break down the quarter, the first five weeks of the year saw exceptional growth of 11.8%. Now this is prior to the conflict in the Middle East and before Next lapped tough comps in the UK, where sales strengthened last year as a result of unusually warm weather, but nonetheless it is a very strong start to the year.
“This was followed up with two weeks of significant disruption in the Middle East, but trade is said to have seen significant recovery in the last five weeks of the quarter, as delivery services have returned to normal, with International sales exiting the quarter at 18% growth. Next has bookended a tough period very nicely.
“Next plans to mitigate the cost increases of air freight and local distribution in its International business by price increases of up to 8%. In Europe costs have been offset by currency gains, so no need for price increases here and in the UK costs will be offset by savings. The strong results has also allowed Next to increase its profit guidance for the full year modestly, by 1%, but maintained its guidance for full price sales.”
