Next plc Raises Profit Forecast Amid UK Tax Warnings

Clothing retailer Next plc raised its full-year profit forecast for the fourth time this year to £1.26 billion, following a strong first half driven by unusually warm UK weather and a 23.9% surge in international online sales. The company reported half-year pre-tax profits between £566 million and £569 million, representing an increase of approximately 11%. This overperformance was further supported by warehouse cost-cutting measures and reduced tariffs on Indian goods, which helped offset rising energy and labor costs.

Despite the profit upgrade, the company lowered its UK sales growth outlook for the remainder of the year from 2.8% to 2%. Chief Executive Lord Simon Wolfson warned the Government of the United Kingdom against implementing tax increases in the October 28 Budget, arguing that the current tax burden is at its highest level in over 60 years. He stated that further increases risk creating a vicious circle that stifles growth and worsens public finances.

Next plc identified rising inflation, higher mortgage interest costs, and a weak employment market as primary concerns for consumers. While the company is deploying AI in various business areas, it continues to invest in human-led fashion design to preserve authentic creativity.