NEXT (NXT) H2 2025 earnings summary

Executive summary

• Group sales rose 8.2% year-over-year to £6,321m, driven by acquisitions and strong international and online growth, while profit before tax increased 10.1% to £1,011m and post-tax EPS rose 9.9% to 636p.

• Ordinary dividend increased by 12.6% to 233p, with dividend cover at 2.8x, reflecting strong cash generation and buybacks.

• 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.

• Group PBT margin improved to 16.0% from 15.7%.

• Net debt reduced by £40 million to £660 million, with strong headroom on financing facilities.

• Cash flow from operations remained robust, with surplus cash at £669m.

• Retail sales in the UK declined 1.1%, while UK online sales grew 5.4%.

Outlook and guidance

• Upgraded full-year guidance: total full price sales expected to rise 5%, 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%.

• Capital expenditure for 2025/26 projected at £179m, with surplus cash expected at £316m.

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

• Operational cash flow expected at £884 million.