Next Shares Surge After Retailer Lifts Profit Forecast for Third Time

Shares in British retailer Next plc surged on Tuesday after the company raised its full-year profit forecast for the third time this year, citing a stronger-than-expected sales performance in its second quarter.

Upgraded Outlook and Sales Beat

In a Q2 trading statement, Next announced that full-priced sales climbed 9.2% in the latest quarter, outperforming analyst forecasts. As a result, the company has increased its annual pretax profit guidance by £25 million.

Next now targets a full-year pretax profit of £1.24 billion, which would represent a 7.3% increase from the previous year. Management attributed the strong performance to two key factors:

• Unseasonably warm summer weather in the UK, which boosted sales.
• A rebound in consumer demand in the Middle East.

Market Reaction

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The market responded positively to the unexpected strength of the trading update. Next's stock (LSE: NXT) jumped as much as 6.1% to 15,710p in morning trading, approaching the 52-week high of 15,900p set during the session.

The retailer has established a pattern of outpacing its own forecasts throughout the fiscal year, which has reinforced investor confidence in its multi-channel business model that spans physical stores, e-commerce, and its Total Platform for third-party brands.

Economic Context

The upgrade comes against a backdrop of a resilient UK economy, which has helped to sustain consumer spending. The UK posted GDP growth of 0.6% in the first quarter of 2026 and 0.7% in the three months to May, according to the source material. This relatively stable macroeconomic environment has provided a constructive setting for UK retailers.