Retail giant Next has reported stronger-than-expected sales and raised its annual profit forecast for the fourth time this year, helped in part by a sales boost following a cyber-attack at rival Marks & Spencer.
The British fashion chain said full-price sales rose 10.5% in the third quarter, driven by robust demand across clothing and homeware, outperforming earlier expectations. The company now expects to post pre-tax profits of just over £1.1bn for the year ending January 2026.
While Next said UK sales growth had eased compared with the “exceptional performance” earlier in the year, it noted that demand had remained stronger than anticipated.
“Our UK sales performance in the first half benefited from favourable weather conditions and competitor disruption,” the company said in a statement. “Nonetheless, UK growth of +5.4% was stronger than we had expected.”
M&S cyber-attack fallout
Next’s strong performance follows a difficult period for Marks & Spencer, which suffered a major cyber-attack in April. The incident disrupted its online operations for weeks, forcing the retailer to suspend click-and-collect services and delay home deliveries.
Although M&S resumed normal operations in June, the fallout saw many shoppers temporarily turn to competitors, including Next and Sainsbury’s.
Retail analyst Kate Hardcastle, from Insight with Passion, said the disruption at M&S had provided Next with a “clear opportunity” to attract new customers.
“Some of Next’s success this year has certainly come from Marks & Spencer’s very challenged times with its cyber-attack,” she told BBC Breakfast. “Next picked up the benefit as consumers moved away from M&S during that period.”
Ms Hardcastle added that Next’s ability to quickly respond to demand, both in-store and online, helped it retain some of those new customers even after M&S services returned.
Strategy and stability
Next, which owns Reiss and FatFace, operates more than 800 stores across the UK and Ireland, and sells online in more than 70 countries. About 80% of its total sales still come from the UK market.
Analysts say the company’s ongoing investment in its digital infrastructure, cost management, and partnerships has helped it maintain momentum in an otherwise challenging retail environment.
Russ Mould, investment director at AJ Bell, said Next’s balance between e-commerce and physical retail had strengthened its market position.
“The work the company is doing with partners and its international expansion has contributed to impressive growth,” he said. “Next’s core brand continues to show resilience in what remains a tricky consumer backdrop, with competitors struggling to match its mastery of the basics of retail.”
Ms Hardcastle added that Next’s approach to efficiency and customer service had made it one of the industry’s most reliable performers.
“Next is hitting all the marks when it comes to understanding what the customer wants,” she said. “At a time when other retailers are cutting back, they’re managing costs without losing focus on quality and service.”
