NEXT plc reported a 9% increase in total group sales and a 10.5% rise in profit for the first half of 2026, exceeding revenue expectations by $200 million. The company's stock price climbed 2.5% to $14,920, reflecting the positive financial performance.
The company's revenue for the period totaled $3.45 billion, surpassing Wall Street's forecast of $3.25 billion. However, earnings per share (EPS) missed the forecasted $3.63 by $0.04. NEXT's full-price sales increased by 7.7%, while profit margins improved by 0.3 percentage points. The company's interim dividend increased by 12.6% to 98 pence per share.
International business was particularly strong, with full-year international growth guidance raised from 14% to 20.5%. WOBL (Wholly-Owned Brands and Licences) grew 82% internationally and 33.5% in UK online sales. Credit sales grew at 6.8%, accelerated by the introduction of the new 'Pay in 3' offer.
For the full year, NEXT expects profit to reach around GBP 1.255 billion, up 8.4% from the prior year. Full-year post-tax EPS growth is expected to be about 10%. The company's year-end debt target is projected to reach GBP 815 million. Capital expenditure (CapEx) is expected to remain roughly constant for the next three years, projected at GBP 245 million for the full year.
Simon Wolfson, CEO of NEXT, commented on the company's performance: 'Total group sales up 9%, full price sales up 7.7%. We've done GBP 355 million of share buybacks in the first half. That means net cash outflow in the first half is GBP 177 million.' Lord Wolfson, Chairman of NEXT, welcomed the attendees and stated: 'The first half has been a strong period for the company with continued sales and profit growth, especially in the international area. This performance does not come by accident, and it certainly reflects the hard work and courageous decision-making of all our employees worldwide.'
