FTSE 100 retailer Next has revised its full-year profit forecast upwards for the fourth time in 2026, now expecting to reach £1.26bn. This increase of £12m was announced after the company experienced an "unexpected" boost in sales, partly attributed to unusually warm summers in the UK.
In a stock market update on Thursday, Next stated that the first half of the year performed better than anticipated, both domestically and internationally. The company also noted that some of this overperformance resulted from fulfilling aims outlined at the start of the year, including cost-cutting efforts in its warehouses.
Overall, the group's total sales rose by 9% in the six months leading up to July. This contributed to an 11% increase in half-year pre-tax profits, reaching £566m. Shares in Next rose 2% in early trading on Thursday, making it the top riser on the FTSE 100.
However, Next expressed concerns about the rising cost of living, higher mortgage interest costs, and a weak employment market. The retailer also suggested that the government might need to increase taxes to fund its expenditure.