Next PLC (LSE:NXT) shares fell 5% after the retailer kept its outlook for sales and profit unchanged, saying that in spite of challenges presented by the UK economy, it "is in a good place".
The FTSE 100 retailer reported a 13.8% increase in group profit before tax to £515 million for the six months to July 2025, slightly ahead of analyst expectations, as total group sales rose 10.3% to £3.25 billion.
Full price sales increased by 10.9% compared to the same period last year, with UK sales up 3.7% in stores and 11.1% online, while international online sales jumped 33%.
Having already upgraded profit guidance three times this year, the company reiterated its guidance for the full year to January 2026. It expects full price sales to grow by 7.5%, and profit before tax to reach £1.11 billion, a 9.3% increase year-on-year.
CEO Simon Wolfson said: "In spite of the challenges presented by the UK economy, Next is in a good place, with multiple opportunities for growth, both in the UK and overseas.
"Our enthusiasm is tempered by the knowledge that the first half was boosted by factors that are unlikely to continue, and the belief that the UK economy is likely to weaken going forward."
He said the company remains optimistic about its outlook and is focused on improving its product offer, online platform, international operations and cost control.
An interim ordinary dividend of 87p per share was declared, to be paid on 5 January, which was slightly higher than analysts expected.
The shares fell 6.5% to 11,223.2p, down over 13% from all-time highs in June to their lowest since April.
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