- Next has increased its 2026 pretax profit forecast to GBP1.07 billion, up from the previous estimate of GBP1.05 billion and slightly above market forecast of GBP1.06 billion.
- Full-price sales are expected to grow by 5%, up from a previous growth rate of 3.5%.
- Total group sales for the year reached GBP6.32 billion, an 8.2% year-on-year increase, slightly above the estimate of GBP6.31 billion.
- Retail total sales were GBP1.85 billion, a slight decline of 0.9% compared to last year, matching estimates.
- Finance total sales grew by 2.4% to GBP300 million, slightly under the estimate of GBP300.6 million.
- Pretax profit reached GBP1.01 billion, representing a 10% year-on-year increase, in line with estimates.
- Operating profit was GBP1.09 billion, up by 9.4% compared to the previous year.
- Retail operating profit fell by 3.3% to GBP237 million, close to the estimate of GBP237.6 million.
- Online operating profit increased significantly by 14% to GBP587.6 million, surpassing the estimate of GBP570.4 million.
- The finance division saw an operating profit of GBP182 million, marking a 12% year-on-year increase.
- Profit after tax rose by 8.4% to GBP761 million.
- Basic earnings per share (EPS) decreased to 615.1p from 661.6p year-on-year, below the estimate of 625.8p.
- Full-price sales for the first eight weeks of the current year exceeded Next’s expectations.
- Post-tax EPS is anticipated to rise by 8.5% due to planned share buybacks.
- Analyst consensus includes 9 buy ratings, 11 hold ratings, and 1 sell rating.
A look at Next PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Next PLC, a retailing and customer services management company, appears to have a mixed long-term outlook based on the Smartkarma Smart Scores. With a strong score in Growth and Momentum, the company seems to be well-positioned for expansion and market performance. The Growth score of 4 indicates a positive trajectory for the company’s future development. Additionally, the Momentum score of 4 suggests that Next PLC is gaining traction in the market, which bodes well for its long-term prospects. However, the Value and Resilience scores are on the lower side at 2, indicating that there may be challenges in terms of valuation and adaptability to market changes.
Despite these mixed scores, Next PLC maintains a decent Dividend score of 3, signaling a stable dividend policy that may attract income-focused investors. Overall, with a focus on retailing and a diverse product offering including ladies wear, menswear, children’s wear, and housewares, Next PLC‘s future performance will likely be influenced by its ability to capitalize on growth opportunities and enhance its resilience in a competitive market environment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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