NEXT (NXT) H2 2026 earnings summary

Executive summary

• Achieved strong growth in FY 2025/26 with total group sales up 10.8% year-over-year and profit before tax up 14.5%.

• Online International and UK segments delivered robust double-digit growth, while Retail stores saw modest gains.

• Two long-serving board members are stepping down, with two new members joining; strong appreciation for employee contributions globally.

• Guidance for FY 2026/27 anticipates continued growth, albeit at a slower pace, with total full price sales expected to rise 4.5%.

Financial highlights

• Total group sales reached £7,004m (up 10.8% YoY); operating profit £1,236m (up 13.4% YoY).

• Profit before tax was £1,158m (up 14.5% YoY); post-tax EPS increased 17% to 744.2p.

• Ordinary dividend up 15% to 268p; capital returned via B share scheme at 360p.

• Surplus cash of GBP 129 million; GBP 221 million distributed to shareholders.

• Net debt increased to £713m, with leverage at 0.60x.

Outlook and guidance

• FY 2026/27 full price sales expected to grow 4.5%, with profit guidance at £1,210m (+4.5%).

• Post-tax EPS forecast to rise 5.8% to 787.3p; dividend yield projected at 2.2%.

• International sales expected to be the main growth driver (+14.3% YoY), while UK retail faces a slight decline.

• Margin gains and cost savings expected to offset wage inflation and higher marketing spend.

• Total full price sales up 4.5% expected; online profit to drive GBP 76 million increase, retail profit to decline GBP 11 million.