NEXT (NXT) H1 2026 (Q&A) earnings summary

Executive summary

• Wholly Owned Brands are prioritized for steady and reliable growth, while larger Total Platform deals provide significant but infrequent impact.

• Full price sales rose by 10.9% and total group sales increased by 10.3% for the half year ending July 2025, with profit before tax up 13.8%.

• Statutory revenue reached £3,145m (+9.9%), and statutory profit before tax was £509m (+17.8%).

• International expansion focuses on improving product breadth and availability, especially through partnerships like ZEOS in Europe.

• Capital is not a constraint; profitable opportunities will continue to receive investment, with significant capital returns planned for shareholders.

Segment performance

• Growth in international markets is driven by expanding product categories, with men's and women's ranges growing fastest in regions previously dominated by children's wear.

• Online UK full price sales up 9.2%, profit £223m (+17.7%), net margin 17.6% (+1.0%).

• Online International full price sales up 28%, profit £93m (+36%), net margin 15.2% (+0.4%).

• Credit customer growth is primarily from converting cash customers, with many using credit as a try-and-buy facility rather than for borrowing.

• Total Platform services profit £6.4m (+76%), margin 18.5% of income.

Financial highlights

• Total group sales: £3,249m (+10.3% vs. last year); NEXT group profit before tax: £515m (+13.8%).

• Retail stores sales up 3.7%, Online UK up 11.1%, Online International up 32.7%.

• NEXT Finance profit after provision releases: £101m (+4.6%).

• Bought-in gross margin increased slightly due to NIC increases, with a general policy of passing cost changes through to consumers.

• A 1% price increase was implemented to offset higher costs, with no significant customer reaction observed.