Next Sales Surge Powered by Sunny Weather and MS Outage as Forecasts Raised for Second Half Growth

Next has reported a sharp rise in full-price sales for the thirteen weeks to 26 July, attributing its success to unseasonably warm weather and a disruptive cyber-attack at its major competitor, Marks & Spencer. Full-price sales grew by 10.5% compared to the same period last year, beating guidance by £49 million and coming in well above the retailer’s expected 6.5% increase.

The retail group stated that the robust performance in the UK resulted primarily from improved trading conditions and the trading disruption experienced by M&S, whose website was forced offline for almost seven weeks following a ransomware attack. This situation resulted in significant shortages in stores and prompted customers to look elsewhere for clothing and homewares.

Next highlighted the continuing effectiveness of its international digital marketing campaign, which drove overseas sales to outperform expectations. Earlier this year, Next surpassed £1 billion in profit for the first time, consolidating its reputation for resilience in the face of turbulent market conditions. The retailer’s multi-brand approach—controlling UK distribution for brands such as Gap and Victoria’s Secret and creating homewares and ranges for Laura Ashley and Ted Baker—means Next is well positioned to benefit from shifts in consumer allegiance.

Looking ahead, Next has raised its guidance for growth in second-half full-price sales to 4.5%, up from its previous forecast of 3.5%, expecting to generate an additional £27 million in revenue. The retailer attributes this upgraded outlook primarily to its international successes, rather than any anticipated repeat of favourable UK trading conditions or competitor disruption.

Sales in the UK are expected to slow, with second-half growth forecast at 1.9%, a step down from the 7.6% recorded in the first half. The retailer pointed to the impact of the recent increase in employer national insurance contributions, saying these would continue to “filter through the economy” and are likely to subdue consumer spending as the year progresses. Next does not anticipate any significant ongoing boost from weather or competitor setbacks going forward, shaping a more cautious outlook for the domestic market.

Next’s latest trading statement underscores the importance of adaptability and strategy in the current retail environment, with digital marketing wins and a diversified business model enabling the group to capture market share in both the UK and abroad.