Next has raised its full-year sales forecast after international online sales grew by more than 32% in the third quarter, helping offset slower trading in the UK.
The retailer reported an 8.1% increase in total full-price sales for the 13 weeks to 31 October 2026. The result was £33 million ahead of its expectations and above the 5.8% growth previously forecast for the second half of the financial year.
In its trading statement on 5 November, Next said all the sales outperformance came from its international business. UK sales continued to grow, but at a slower rate than during the first half.
The latest results show how important overseas customers have become to the retailer’s growth, particularly as demand for clothing in the UK remains uneven.
UK Sales Slow as Overseas Orders Increase
Next’s UK full-price sales increased by 2% during the third quarter. That was below the 3.6% growth recorded in the first half of the year.
Online trading in the UK also slowed. Sales across Next’s UK online business rose by 4.4%, compared with 7.4% in the first half. Sales in physical retail stores fell by 1.7%.
The company described UK trading as volatile. Warm weather in September affected demand for autumn clothing, although sales improved in October as temperatures fell.
Official retail figures support the company’s explanation. The Office for National Statistics reported that UK retail sales volumes fell by 0.4% in September. Clothing and footwear stores recorded lower sales, with retailers pointing to reduced footfall and customers cutting back.
Online clothing retailers also reported weaker demand for autumn and winter ranges during the unusually warm weather. September 2026 was the joint-fourth warmest September on record, according to the Met Office figures cited by the ONS.
The wider figures do not prove that all clothing retailers faced the same conditions. However, they provide useful context for Next’s explanation of its UK performance.
International Online Sales Rise by 32.2%
Next’s overseas online business delivered much stronger growth.
International online sales increased by 32.2% in the third quarter, accelerating from 23.9% in the first half. Growth for the first nine months of the financial year reached 26.8%.
The company reported similar growth across its international sales channels. Direct international sales increased by 32.7%, while sales through third-party aggregators rose by 31.3%.
Next also increased its international marketing budget by 67% compared with the previous year. The company said it had seen stronger returns from this spending, although higher marketing investment is part of the cost of expanding overseas.
The international performance was strong enough to account for all the sales outperformance during the quarter.
However, higher sales did not translate into an additional profit windfall. Next said the extra £5 million in profit generated by the sales outperformance was offset by increased international operating costs.
EU Tariffs Add to International Costs
New European Union tariffs are creating an additional cost for Next’s international operation.
The company said the EU introduced changes effective from 1 July and 1 November 2026. They affect certain online orders placed in the EU when goods are shipped from outside the bloc.
Next already holds a large amount of stock within the EU through its logistics partner ZEOS. However, some customer orders are still fulfilled from UK stock and are therefore affected by the new charges.
The retailer expects the changes to add around £5 million in net costs during the current financial year.
Next plans to reduce the impact by adjusting its operations and making selective, modest price increases in Europe. The company expects these changes to offset the additional costs over time.
For now, the tariffs are a reminder that international expansion brings operational challenges as well as new customers. Higher sales do not always produce the same increase in profit.
Next Increases Its Full-Year Sales Forecast
Following the third-quarter performance, Next raised its full-year sales expectations for the financial year ending in January 2027.
The company now expects total group sales, including markdowns and investments, to reach £7.54 billion. Its previous forecast was £7.49 billion.
Its full-price sales forecast has increased from £6 billion to £6.03 billion. Next now expects full-price sales growth of 7.3%, compared with its earlier forecast of 6.7%.
The company has not changed its profit guidance. It continues to expect pre-tax profit of £1.255 billion, an increase of 8.4% on the previous year.
Next expects full-price sales growth of 5.8% during the final quarter. Its forecast assumes UK sales growth of 2%, while international online growth is expected to slow to around 20.5%.
The expected slowdown overseas reflects tougher comparisons with the previous year, when international sales were already growing strongly.
What the Results Mean for UK Retail
Next’s latest figures show two different conditions within the same retail business.
UK sales are still growing, but the pace has slowed. Physical store sales are weaker, while online growth has also eased. Overseas online trading is expanding much faster and has become the main source of sales growth.
The wider retail environment remains difficult. The Bank of England raised Bank Rate from 3.75% to 4% on 5 November, its first increase in more than three years. Higher borrowing costs could add pressure for households already managing higher living expenses, although the effect on clothing spending will depend on wider economic conditions.
Next’s results also show that international growth comes with extra costs. Marketing investment, logistics and EU tariffs all affect how much of the additional sales revenue reaches the bottom line.
The retailer has improved its sales outlook, but it has kept its profit forecast unchanged. That is an important distinction.
For the rest of the financial year, the key question is whether overseas demand can remain strong enough to offset slower UK trading and the additional costs of serving international customers.
Source: Next plc, Third Quarter Trading Statement, 5 November 2026; Office for National Statistics, Retail Sales: September 2026; Bank of England, Monetary Policy Decision, 5 November 2026. This article reports company trading information and is not investment advice.
