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Next's quarterly sales beat guidance on strong overseas performance - Finance news and analysis from Global Banking & Finance Review
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Next's quarterly sales beat guidance on strong overseas performance

Published by Global Banking & Finance Review

Posted on November 5, 2026

2 min read

· Last updated: November 5, 2026

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Next’s Q3 Sales Surge 8.1%, Outpacing Expectations with International Growth

Next’s Third Quarter Performance Overview

By James Davey

UK Sales Performance

LONDON, Nov 5 (Reuters) - British clothing retailer Next on Thursday reported a better-than-expected 8.1% rise in third-quarter full price sales, as strong international growth more than offset a slowdown in the UK.

Next said UK full price sales rose 2.0% in the 13 weeks to October 31 year-on-year, down from growth of 3.6% in the first half but in line with guidance. The UK accounts for about three quarters of Next's sales.

Volatility in UK Trading

The group said UK trading had been volatile, with unseasonably warm weather adversely affecting sales in September before trading picked up in October as the weather turned colder.

Competitive Landscape in the UK Market

Britain's clothing market has been tough this year. In September, rival Primark reported flat fourth quarter UK like-for-like sales. On Wednesday, Marks & Spencer highlighted a challenging market.

International Sales Soar

Next's online international sales soared 32.2%, accelerating from growth of 23.9% in the first half as it stepped-up marketing spend.

Impact of International Growth on Overall Performance

It said all of the quarter's sales over-performance came from its international business, with the additional £5 million ($6.7 million) profit from these sales offset by increased EU tariff costs.

Outlook and Analyst Commentary

After four upgrades this year, Next kept its forecast for a year to end-January 2027 profit before tax of £1.255 billion, up from the £1.158 billion made in 2025/26. It also kept its forecast for fourth quarter full price sales to be up 5.8% year-on-year.

Shares in Next were up 0.5% in early deals, extending 2026 gains to 17.5%.

Analyst Insights

"Once again, Next's Q3 shows a business amply able to offset near-term UK pressures with abundant International growth," said analysts at Jefferies.

($1 = 0.7413 pounds)

(Reporting by James Davey; editing by Sarah Young, Alexandra Hudson)

Key Takeaways

  • Next’s international online sales soared 32.2%, accelerating from H1’s 23.9%, and drove the sales beat against guidance.
  • UK full‑price sales slowed to 2.0% in Q3, impacted by unseasonably warm weather, yet met company expectations.
  • Full‑year profit before tax guidance remains at £1.255 billion, with shares up ~17 % year‑to‑date, underlining continued investor confidence.

Frequently Asked Questions

How much did Next's third-quarter full price sales rise?
Next's third-quarter full price sales rose by 8.1%, exceeding company guidance due to strong overseas performance.
What drove Next's sales growth in Q3?
The growth was driven by a 32.2% surge in online international sales, offsetting slower growth in the UK market.
What challenges did Next face in the UK market?
Next faced volatile UK trading due to unseasonably warm weather impacting September sales, before a recovery in October.
How did the market react to Next’s Q3 results?
Shares in Next rose by 0.5% after the Q3 results announcement, extending 2026 gains to 17.5%.

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