Shares of the FTSE 100-listed Next PLC (GB:NXT) surged over 4% as of writing after the retailer upgraded its profit forecast for FY24/25. The company raised its profit guidance by £5 million to £1.01 billion for the fiscal year ending in January 2025. For FY25/26, Next projects a 3.5% growth in full-price sales and a pre-tax profit of £1.046 billion.
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Next is a well-known UK retail brand that offers clothing, footwear, and home goods.
Next Delivers Strong Holiday Sales
Next delivered a 6% growth in full-price sales during the nine-weeks ending December 28. Meanwhile, the underlying full-price sales grew by 5.7%, surpassing the company’s previous guidance of 3.5% for the period.
On the other hand, Next saw a 2.1% decrease in retail sales, reflecting a decline in foot traffic at its stores.
Next Signals Slower Growth and Higher Prices
Along with festive cheer, Next also signalled slower profit and sales growth this year hit by the tax hikes outlined in the UK Budget. The company expects UK full-price sales growth of 1.4% in FY25/26, a decrease from 2.5% in the 12 months leading up to December 28, 2024.
Additionally, the company announced that it would increase like-for-like prices by 1% to offset £13 million of wage costs introduced in the latest UK budget.
Are Next Shares a Good Buy?
According to TipRanks’ consensus, NXT stock has received a Hold rating, backed by six Hold and two Buy recommendations from analysts. The Next share price forecast is 10,514.3p, which is 6.6% above the current trading levels.
