NEXT (NXT) H2 2025 earnings summary

Executive summary

• Group sales rose 8.2% year-over-year to £6,321m, with profit before tax up 10.1% to £1,011m and post-tax EPS up 9.9% to 636p, driven by increased stakes in Reiss and the acquisition of FatFace.

• Online sales and profit showed strong growth, especially internationally, while Retail sales declined slightly.

• Ordinary dividend increased 12.6% to 233p, with dividend cover at 2.8x, outpacing EPS growth due to buyback timing.

• Emphasized maintaining entrepreneurial culture and operational simplicity despite company growth.

Financial highlights

• Operating profit increased 9.4% to £1,090m; profit after tax up 8.5% to £761m year-over-year.

• UK retail sales declined 1.1%, while UK online sales grew 5.4%; international sales surged 24.6%.

• Online business sales up 9.8%, with total profit up 13.3%.

• Net debt reduced by £40m to £660m; net assets up £116m, mainly from increased stock.

• CapEx for the year was £151m, below expectations, with a planned increase to £179m next year, mainly for new store space and technology.

Outlook and guidance

• Upgraded full-year guidance: now expecting 5% total full price sales growth, with first half up 6.5%.

• Profit before tax forecasted at £1,066m (+5.4%), with pre-tax EPS up 8.8% and post-tax EPS up 8.5%.

• International sales expected to grow 18% in 2025/26.

• Operational cash flow expected at £884m, with surplus cash of £426m after dividends and CapEx.

• Cautious on second half due to tougher comps and potential consumer headwinds.