Next, the FTSE 100 retail giant, has upgraded its pre-tax profit expectations for 2026 to £1.24bn. This figure is approximately £25m higher than previous estimates and would represent 7.3 per cent growth on the prior year if achieved.
The group's total sales target, including markdowns and investments, has also been raised to £7.5bn from £7.3bn. This follows second-quarter sales coming in £70m ahead of forecast, attributed partly to warm weather and a release of pent-up demand in the Middle East and Northern Europe.
Total UK sales saw a 2.8 per cent increase in the second quarter, while international purchases rose by nearly 37 per cent. The company also stated it was able to spend more on profitable marketing than anticipated.
Next has also increased its target for returning cash to investors, with plans to buy back £524m worth of its own shares this year, which is around £14m more than previously expected. So far this year, £355m has been spent on share buybacks at an average price of £127.69 per share, reducing the overall pool of shares by 2.3 per cent.
The company has £169m in extra cash remaining to return to shareholders over the rest of the financial year. Next stated it would continue buying back shares with a strict share price limit of £135. If the stock price exceeds £135, the firm plans to distribute the remaining £169m directly to investors through a one-off special cash dividend.