Tue, 06 Jan 2026

Tue, 06 Jan 2026 Next raises profit forecast to £1.15bn after bumper Christmas sales

Festive trading at the retailer beat expectations, but rising unemployment is expected to weigh on demand this year.

* Next has raised its profit forecast after reporting a 10.6% rise in full-price sales over the Christmas period, beating expectations.
* The retailer now expects to report annual profits of £1.15bn, up from previous estimates.
* However, Next warned that UK sales growth will slow this year due to rising unemployment and pressure on consumer spending.
* For the coming year, Next forecasts 6.6% growth in UK sales for the current financial year, but only 1.6% for 2026-27.
* Analysts believe that Next's strong performance was driven by its range of products and well-known brands, as well as consumers delaying purchases until after the Budget announcement.
* The wider retail sector is expected to see steady rather than stellar results over Christmas, with some retailers potentially leaving the High Street for good.
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