High street heavyweight Next has increased its full year sales forecast to £6billion after a better than expected weather related demand
Fashion giant Next has upped its profit guidance for the third time this year thanks to a heatwave surge in sales.
Takings jumped 9.2% in the 13 weeks to the start of August – smashing its forecast 4% increase for the period – and equating to an extra £70million boost to its coffers. The industry heavyweight now expects its annual sales to top the £6billion figure, and for profits to rise by more than 7% to £1.24billion.
In the UK, sales were up by 2.8%, with online shopping driving the increase while stores sales decreased. Meanwhile, online international sales soared by 37% year-on-year, according to the latest update to investors.
Next said the “over-performance” was partly due to weather in the UK being warmer than anticipated, with temperatures in June and July soaring, as well as spending more on profitable marketing campaigns.
It also pointed to the release of pent-up demand in the Middle East and Northern Europe following a weaker start to the year for both regions.
Trading in Next’s overseas business have been affected by the Iran war, which began at the end of February, with the Middle East region accounting for around 6% of the group’s annual sales.
But chief executive Lord Simon Wolfson previously said that it planned to raise prices in some overseas countries by as much as 8% to offset the impact.
Julie Palmer, managing partner at advisory group BTG, said: “The fashion retailer remains not only undeterred by the supply chain cost pressures from the war and disruption on the Strait of Hormuz, but even seems to have underestimated the resulting pent-up demand in some markets that has worked in their favour.”
Shares in Next, which trades from more than 800 stores in the UK and Ireland and has an online operation serving the UK and overseas, rose 7% in early trading, extending their gain so far in 2026 to 19%.
Richard Hunter, head of markets at at investment platform Interactive Investor, said: “Next has done it again, breezing past its own estimates which has led to yet another profit upgrade for the year as a whole.
“The numbers once more underline the group’s unparalleled understanding of the market in which it operates and its ability to capitalise on new opportunities, such as the potentially exciting opportunities in the international business.”
Chris Beauchamp, chief market analyst at investing and trading platform IG, said: “In an ever-changing world, upgrades to Next’s profit forecast is much-needed certainty.”
Retailers saw sales rise unexpectedly in June as shoppers increased their spending on air conditioning and clothing, official data showed last month, adding to signs of a pickup in the economy spurred by weather and the soccer World Cup.
The data chimed with a GfK survey of improved sentiment among consumers, helped by hopes about new prime minister Andy Burnham, despite concerns about the war in Iran.
