NEXT (NXT) H1 2025 earnings summary

Executive summary

• Group sales rose 8.0% year-over-year to £2,946m for July 2024, driven by strong overseas and online performance, while retail declined as expected.

• Operating profit after lease expense grew 7.1% to £491m, and profit before tax increased 7.1% to £452m; profit after tax rose 5.2% to £341m.

• Interim dividend increased 13.6% to 75p per share, with ordinary dividends maintained at 35% of profit.

• Upgraded full year guidance: profit before tax now expected at £995m (+8.4% year-over-year), with full price sales up 4.0% and total Group sales up 6.6%.

• Investments in automation, Total Platform, and increased stakes in Reiss and FatFace supported future growth.

Financial highlights

• Total Group sales: £2,946m (+8.0% vs. prior year); statutory revenue: £2,860m (+13.6%).

• Online sales up 8.4% to £1,603m; Retail sales down 2.1% to £867m; full price sales up 4.4%.

• Operating profit after lease expense up 7.1%; profit before tax and after interest stable.

• Post-tax EPS rose 6.2% to 282.8p; pre-tax EPS up 8.1% to 375.3p.

• Net debt (excluding lease debt) at £718m, up £12m year-over-year; net assets increased by £376m, mainly from consolidating Reiss.

Outlook and guidance

• Full year 2024/25 guidance: profit before tax forecast at £995m (+8.4%), full price sales up 4.0%, total group sales up 6.6%.

• Pre-tax EPS growth projected at 9.7%, post-tax EPS up 8.1%.

• Overseas full price sales expected to grow 19.6%, UK up 1.4%.

• Margin improvements in online and overseas expected to continue, but retail margin faces pressure from wage inflation.

• Net debt (excluding leases) expected to reduce by £75m to £625m by year end.