Next's quarterly sales beat guidance on strong overseas performance

By James Davey

LONDON, Nov 5 (Reuters) - British clothing retailer Next on Thursday reported a better-than-expected 8.1% rise in third-quarter full price sales, as strong international growth more than offset a slowdown in the UK.

Next said UK full price sales rose 2.0% in the 13 weeks to October 31 year-on-year, down from growth of 3.6% in the first half but in line with guidance. The UK accounts for about three quarters of Next's sales.

The group said UK trading had been volatile, with unseasonably warm weather adversely affecting sales in September before trading picked up in October as the weather turned colder.

Britain's clothing market has been tough this year. In September, rival Primark reported flat fourth quarter UK like-for-like sales. On Wednesday, Marks & Spencer highlighted a challenging market.

INTERNATIONAL SALES SOAR

Next's online international sales soared 32.2%, accelerating from growth of 23.9% in the first half as it stepped-up marketing spend.

It said all of the quarter's sales over-performance came from its international business, with the additional £5 million ($6.7 million) profit from these sales offset by increased EU tariff costs.

After four upgrades this year, Next kept its forecast for a year to end-January 2027 profit before tax of £1.255 billion, up from the £1.158 billion made in 2025/26. It also kept its forecast for fourth quarter full price sales to be up 5.8% year-on-year.

Shares in Next were up 0.5% in early deals, extending 2026 gains to 17.5%.

"Once again, Next's Q3 shows a business amply able to offset near-term UK pressures with abundant International growth," said analysts at Jefferies.

($1 = 0.7413 pounds)

(Reporting by James Davey; editing by Sarah Young, Alexandra Hudson)