Next is set to reveal a jump in profits for the past year amid robust trading at the fashion chain despite a fragile consumer backdrop.
The retailer has been among the high street’s strongest performers in recent years despite uncertain economic conditions.
The company has raised sales and profits guidance nine times in the past two years, which helped the group’s shares strike a record high late last year.
Shareholders will be hopeful that the retailer will upgrade its guidance again when it updates the market on Thursday March 27.
In January, boss Lord Simon Wolfson said the firm was on track to deliver pre-tax profits of £1.01 billion for the year to January, ahead of previous expectations.
The group is therefore expected to show that profits were up 10% year-on-year in the update next week.
Next said profits are only likely to be marginally higher for the new financial year as it swallows significant cost increases.
The high street bellwether is facing a £67 million surge in its wage costs in the year to January 2026 – rising to £73 million for a full year’s impact – after the Labour Government announced plans to increase employer national insurance contributions and the minimum wage from April.
As a result, it has said it will need to push through an “unwelcome” 1% rise in prices as part of efforts to help offset the hit.
Analysts have highlighted that the company will need to be careful in how it manages keeping cash-strapped customers coming into its shops while offsetting its cost increases.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Despite a slight improvement in February, UK consumer confidence remains fragile, so Next will have to balance price increases carefully.
“Next expects pre-tax profits to rise again in 2025 to £1.05 billion, but given its track record of guidance upgrades, analysts wouldn’t rule out that figure getting nudged higher next week.”
On Thursday, shareholders will be hoping the company points to strengthening sales across its UK stores.
In the nine weeks to December 28, the company saw UK store sales drop 2.1%, while online sales were up 6.1%.
The company will be hoping it saw resilient activity over the start of 2025.
