Fashion and interiors chain Next has broken through £1 billion in pre-tax profits for the first time after posting a 10.1% increase in the year to the end of January.

The company also raised its guidance for sales and profit growth in its new financial year after today’s results showed that trading in the first eight weeks of the period has been ahead of expectations.

Next said the pre-tax figures came in at £1.01bn and it is guiding to £1.07bn next time. Sales rose 8.2% to £6.3bn in 2024/25, with full-price sales up 5.8%.

The company now estimates sales growth of 5% for the first half of the year and full-price sales up 6.5%, compared with previous estimates of 3.5% in both cases.

It advised against overstating the importance of the £1bn figure.

“To some it may seem an important milestone, even a cause of celebration,” it said. “We do not share that view, not least because profits can go down as well as up. In fact, we think it would be a big mistake to view the company differently just because it has passed any milestone.”

Shares in Next rose 6% or 604p in early trade to 10,590p, helping lift Marks & Spencer by 4%.

The FTSE 100 index was more than 50 points lower after Donald Trump’s latest declaration on tariffs. Aston Martin Lagonda joined the global car industry sell-off as its shares slid 7% or 5.15p to 68.45p.

Market reaction

John Moore, senior investment manager at RBC Brewin Dolphin, said: “Next continues to find ways of growing sales and its bottom line, despite the well-publicised challenges facing consumers and the retail sector at large.

“Profits have reached the £1 billion milestone, sales for 2025 so far have been ahead of expectations, and guidance for the year has been raised – it’s a strong report card.

“Inevitably there are challenges ahead, not least in balancing increasing costs with fragile consumer sentiment, as well as signs of weak clothing pricing in the latest inflation data.

“However, with international expansion surpassing the company’s own predictions and increased National Insurance contributions already accounted for, Next is well placed to navigate any obstacles – as it has done time and again.”

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