Critical milestone approaches for retail bellwether
NEXT is preparing to release its fourth quarter (Q4) 2025 sales and revenue figures, a key milestone in the group’s financial calendar that will shed light on how the retailer’s performance has carried through the critical autumn and Christmas trading periods.
Although the official trading statement for Q4 is scheduled for 6 January 2026, investors and analysts are already forming expectations based on recent quarterly updates.
And revised full-year guidance that has been upgraded multiple times throughout the year.
In its third quarter (Q3) trading statement for the 13 weeks to 25 October, NEXT reported solid growth in full price sales.
Strong Q3 momentum underpins optimism
Year-to-date results showing underlying momentum across both its domestic and international segments provided confidence.
Full price sales – which include revenue from NEXT’s retail stores, online channels and NEXT Finance interest income – grew by about 10.8% over the 39 weeks to late October.
With particularly strong contributions from international markets and digital commerce channels outpacing traditional UK retail.
This strong performance underpinned the company’s decision to again revise its expectations for the full year upward.
Guidance upgraded on operational strength
In late October, NEXT revised its full-year 2025/26 sales and earnings guidance, with the company now expecting Total Group sales of around £6.87 billion, up from previous forecasts of £6.72 billion, and an upgraded outlook for profit reflecting continued resilience.
The guidance upgrade suggests that the retail business has been able to capitalise on stronger than expected demand in key categories and is managing cost headwinds more effectively than anticipated across its operations.
Omnichannel model drives competitive advantage
NEXT’s omnichannel model – a blend of physical stores, a large online presence and third-party brand hosting via its Label platform – remains a core strength.
Helping the group sustain sales growth even as high-street footfall shifts and consumer preferences evolve toward digital channels.
Online sales, especially from international markets, have been a major driver of this growth, outpacing UK retail and broadening NEXT’s revenue base beyond its traditional UK customer footprint into new geographical markets.
Christmas period provides crucial test
The forthcoming Q4 sales release will be particularly important because it covers the run-up to and through the Christmas and New Year periods.
Historically pivotal for fashion and homeware retailers who generate substantial portions of annual profits during this season.
Analysts will closely monitor whether the year’s strongest seasonal demand translated into continued full price sales growth, whether markdown pressure remained contained and how inventory and clearance levels behaved relative to expectations and planning.
Fundamental analysts rate NEXT as a ‘hold’ and have a long-term mean price target at 14,284.21 pence, around 5% above the current share price (as of 31/12/2025).