Fashion and homeware brand Next plc has raised its full-year profit guidance after reporting another strong quarter of trading, with full price sales up 10.5% year-on-year in the thirteen weeks to 25 October.

The figure came in £76m ahead of the retailer’s expectations, as both domestic and international sales continued to outperform.

UK sales grew 5.4% in the period, while overseas business rose 38.8%, buoyed by improved stock availability and higher digital marketing spend.

The company now expects full-year profit before tax of £1.135bn, an increase of £30m on previous forecasts and has upgraded its fourth-quarter sales outlook from 4.5% to 7%.

In its latest quarterly report, released today (29 October) Next said “growth through our direct websites was better than expected because we were able to spend more on profitable digital marketing than anticipated”.

The company said marketing expenditure in the third quarter was up 50% versus previous guidance.

Chief financial officer Jonathan Blanchard said: “We’re encouraged by the resilience of UK demand and the momentum in our overseas markets.

“Our focus remains on profitable growth, maintaining healthy stock levels, and ensuring our customers have access to the best possible product availability both online and in-store.”

Next said it anticipates generating around £425m in surplus cash this year and, in the absence of further share buybacks or acquisitions, intends to return remaining funds to shareholders through a special dividend of around £3.10 per share at the end of January 2026.

The company’s next trading update, covering Christmas sales to 27 December, is scheduled for 6 January 2026.

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