NEXT (NXT) H1 2025 earnings summary

Executive summary

• Group sales rose 8% year-over-year to £2,946m for July 2024, driven by strong overseas and online performance, while UK retail met expectations or declined.

• Operating profit after lease expense grew 7.1%, and profit before tax increased 7.1% to £452m; profit after tax up 5.2% to £341m.

• Interim dividend increased 13.6% to 75p per share, reflecting two years' growth due to last year's conservative approach.

• Online segment now represents 54% of Group sales and profits, with Retail reduced to 30% of sales and 19% of profits.

• Investments and Total Platform profit surged, driven by increased stakes in Reiss and FatFace and new client launches.

Financial highlights

• Total Group sales: £2,946m (+8.0% vs. prior year); statutory revenue: £2,860m (+13.6%).

• Online sales up 7.0% to £1,603m; Retail sales down 2.1% to £867m; full price sales up 4.4%.

• Profit before tax: £452m (+7.1%); profit after tax: £341m (+5.2%).

• Post-tax EPS rose 6.2% to 282.8p; pre-tax EPS: 375.3p (+8.1%).

• Net cash flow down £18.5m, mainly due to working capital swings and increased stock.

Outlook and guidance

• Full-year profit before tax guidance raised to £995m (+8.4%); full price sales expected up 4.0%.

• EPS growth forecast at 9.7% pre-tax and 8.1% post-tax.

• Overseas full price sales expected to grow 19.6%, UK up 1.4%.

• Margin improvements in online and overseas expected to continue, but retail margin faces pressure from wage inflation.

• Net debt (excluding leases) expected to reduce by £75m to £625m by year end.