Rapid News Brief
Next said on Nov. 5, 2026, that faster overseas demand lifted third-quarter full-price sales 8.1%, while higher international operating costs kept its annual profit forecast at £1.255 billion. The British retailer raised its full-year sales forecast, not its profit target.
The company’s trading statement put full-year full-price sales at an expected £6.03 billion, up from £6.00 billion previously. Its annual profit forecast still implies 8.4% growth under Next’s reporting definition.
International online growth outpaces the U.K.
Reuters reported that the update covered the 13 weeks through Oct. 31. International online sales grew 32.2%, against 23.9% in the first half. U.K. full-price sales increased 2.0%, compared with 3.6% in the first half, matching Next’s guidance. Reuters said the U.K. still accounts for about three-quarters of the company’s sales.
Next attributed its international direct-sales performance to better marketing returns than expected. It said that allowed associated marketing spending to rise 67% from a year earlier, compared with a previous plan for 42% growth.
U.K. online sales grew 4.4% while store sales fell 1.7%, according to Next, showing that domestic channels also moved in different directions.
Why the profit outlook stayed put
Next said sales above its earlier assumption added an estimated £5 million of profit, but that benefit was absorbed by higher international operating costs. That figure is not the company’s total quarterly profit.
The unchanged profit target follows four forecast upgrades earlier this year, Reuters reported. Next also maintained its fourth-quarter full-price sales growth assumption at 5.8%, rather than extending the latest quarter’s stronger growth rate into the holiday period.
The operational distinction is the central business takeaway: acquiring more demand abroad does not automatically deliver a larger earnings contribution. Marketing, fulfillment and cross-border cost management need to be evaluated together, rather than judging expansion from sales growth alone.
Next’s full-price sales measure includes finance interest income and excludes sale events, clearance, platform commissions and subsidiary sales. The annual profit forecast also uses company-defined exclusions, including brand amortization and exceptional profits.
Next has scheduled its next trading update for Jan. 6, 2027, covering sales through Dec. 26, 2026.