NEXT (NXT) H2 2026 (Q&A) earnings summary

Executive summary

• Achieved strong growth in full price sales and profits for the year ending January 2026, with total group sales up 10.8% and profit before tax up 14.5% year-over-year.

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

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

Financial highlights

• Total group sales reached £7,004m (+10.8% YoY); operating profit £1,236m (+13.4% YoY); profit before tax £1,158m (+14.5% YoY).

• Post-tax EPS increased 17% to 744.2p; total ordinary dividend up 15% to 268p.

• Net debt (excl. lease debt) rose to £713m (+8% YoY).

• Surplus cash before distributions was £786m; total distributions (dividends and buybacks) £839m.

Segment performance

• Overseas growth in third-party brands reached approximately 22%, driven by improved selection and new partner brand agreements for international sites.

• Online International: Sales up 39%, profit up 52%, margin up to 15.1%.

• Online UK: Sales up 10.2%, profit up 15%, margin improved to 18.2%.

• Retail stores: Sales up 2.4% YoY, operating profit down 5%, margin declined to 10.2%.

• Franchise stores in the Middle East have been impacted, but specific details were not disclosed.