Next has raised its full-year profit forecast for the fourth time this year, despite expecting growth in its UK business to lose momentum.

It now expects pre-tax profit of £1.255bn for the year to January 2027, up £12m on its previous forecast and 8.4 per cent ahead of last year.

The increase reportedly reflects stronger sales expectations alongside further cost savings, particularly across its warehousing operation.

Next posted a 10.5 per cent rise in first-half pre-tax profit to £569m for the six months to 1 August, while full-price sales climbed 7.7 per cent, helped by the warm summer weather.

However, the retailer struck a more cautious note on its domestic business, cutting its forecast for second-half UK sales growth from 2.8 per cent to two per cent.

Next pointed to concerns over the UK economy, with inflation, higher mortgage costs and a subdued employment market weighing on its outlook for consumers.

It nevertheless increased its overall second-half full-price sales growth forecast from five per cent to 5.8 per cent, driven by a stronger outlook for its international operations.

Its international business has made an encouraging start to the period, prompting Next to raise its second-half sales growth forecast for the division to 20.5 per cent.

Next has repeatedly upgraded its expectations during 2026, with its August trading update lifting its pre-tax profit forecast to £1.243bn after better-than-expected summer trading.

At the time, it said warm UK weather, pent-up demand in overseas markets and increased marketing investment had helped sales outperform forecasts.

Next’s latest guidance puts it on track to surpass the £1.158bn pre-tax profit it delivered in its previous financial year.

Click here to sign up to Retail Gazette‘s free daily email newsletter