Next boosts profit forecast, plans large special dividend

Next PLC on Wednesday raised its full-year profit forecast for the second time in four months and announced plans for a large special dividend, after strong sales in its third quarter.

The British fashion retailer now expects profit before tax of 1.135 billion British Pounds for the year, an increase of 30 million British Pounds from its previous guidance issued in July.

The upgrade follows a 10.5% rise in full-price sales in the 13 weeks to Oct. 25, beating the company's own forecast of a 4.5% increase.

Sales growth was driven by a 38.8% surge in its international online business and a better-than-expected 5.4% rise in the U.K., according to the company.

Next said it had previously underestimated the positive effect of improved stock levels in the U.K. this year compared with last year's supply chain disruptions.

With its share price above its buyback limit, Next said it intends to return remaining surplus cash of around 369 million British Pounds to shareholders.

This will be done via a special dividend of around 3.10 British Pounds per share at the end of January 2026, the company said.

The company also raised its sales growth guidance for the final quarter to 7.0% from 4.5%.