British fashion retailer Next reported a 13.8% rise in first half profit and stuck to its full year profit forecast but said it remained cautious about second half trading, expecting UK sales growth to slow.
The FTSE 100 company said on Thursday it expects UK employment opportunities to continue to diminish in its second half to end-January 2026, with the effects of April's employer tax increases continuing to filter through into the economy, dampening consumer spending, Reuters reported.
Next has around 460 stores in the UK and Ireland and an online presence in over 70 countries selling the Next brand and more than 700 other brands. With the United Kingdom accounting for around 80% of its sales, it is often considered a useful gauge of how British consumers are faring.
It said it still expects second half full price sales growth to slow to 4.5%, versus growth of 10.5% in its second quarter when it benefited from a cyberattack at rival Marks & Spencer .
Next maintained its forecast for full year pretax profit of 1.105 billion pounds, up from 1.011 billion pounds in 2024/25.
Pretax profit was 515 million pounds in its first half to end July.
