Next has raised its full-year profit forecast for the fourth time in 2026, increasing expectations by £12 million to £1.26 billion, driven largely by unexpectedly strong summer sales. The FTSE 100 retailer, which operates over 500 UK stores and owns the UK rights to Gap and Victoria's Secret, achieved this remarkable growth despite challenging economic conditions, demonstrating the strength of its underlying business performance.

In the six months to July, total sales rose 9% with pre-tax profits increasing 11% to £566 million, building on the company's milestone of £1 billion in annual profits achieved for the first time in 2025. However, Next is tempering expectations for the coming period, lowering projected UK sales growth from 2.8% to 2%, citing concerns about rising inflation, higher mortgage costs, weak employment prospects, and anticipated government tax increases in the October budget. Chief executive Simon Wolfson warned that economic conditions are likely to worsen rather than improve given the government's £100 billion deficit and limited capacity for intervention.