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Next PLC on Wednesday raised its guidance for the current financial year 2026 as it noted faster growth in overseas sales, while UK sales growth in the third quarter beat guidance. The Leicester, England-based clothing retailer says in the 13 weeks to October 25, full price sales were up 11% from last year. It was £76 million ahead of guidance for a 4.5% rise in sales in the third quarter. Next said sales ‘overperformed’ in both the UK and overseas. Sales in the UK were up 5.4% from last year, slowing from 7.6% growth in the first half but ahead of 1.9% guidance. Overseas sales were 39% higher than a year ago, beating 28% growth in the first half and guidance for a 19% rise. Next raised its fourth-quarter full price sales growth outlook to 7.0% from 4.5%, which adds £36 million of full price sales to its forecast. Further, it raised its full-year guidance for pretax profit by £30 million to £1.14 billion, which would be up 12% from £1.01 billion in financial 2025. Next said it is assuming that it will make no further share buybacks in the current financial year, as the share price is currently higher than its buyback limit. In the absence of any acquisitions or further buybacks, the company said it intends to return remaining surplus cash with a special dividend at the end of January, when its financial year ends. Based on the latest guidance, the special dividend would be around £3.10 per share, Next said. The retailer plans to release a Christmas trading statement on January 6. Next shares were up 5.2% to 14,110.00 pence each on Wednesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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