UK's Next nudges up profit guidance but expects sales growth to slow

LONDON, Sept 17 (Reuters) - British clothing retailer Next NXT.L edged up its annual forecast for the fourth time this year on Thursday, as it reported a 10.5% profit rise for its first half, but expects sales growth to slow in its second half.

The group, which trades from more than 800 stores in the UK and Ireland, including Reiss, Joules and FatFace outlets, and has an online operation serving the UK and overseas markets, made a profit before tax of £569 million ($762 million) in the six months to August 1, on total full price sales up 7.7% that were boosted by the hot summer weather.

Next now expects full price sales growth to slow to 5.8% in its second half, having previously forecast growth of 5.0%.

It said its international business had made an encouraging start to the season, and raised its second half sales growth guidance to 20.5%.

However, Next moderated its second half sales growth expectations for the UK from 2.8% to 2.0%, reflecting concerns about the UK economy.

The group, whose shares have increased by a quarter over the last year, raised its profit before tax guidance for its year to January 2027 by £12 million ($16 million) to £1.255 billion, reflecting the small upgrade in sales expectations and some additional cost savings, mainly in warehousing. It made £1.158 billion in 2025/26.

($1 = 0.7472 pounds)