British fashion retailer Next has raised its profit forecast for the year ending January 2026 after strong Christmas sales. Full-price sales increased by 10.6% in the nine weeks to 27 December, with international online sales up 38.3%. Post-tax earnings per share are expected to grow by 16.1%.

Next expects full-price sales to grow by 4.5% in the year ending January 2027, with group profit before tax forecast at £1.20bn. Cash available for distribution to shareholders is projected at £768m, equivalent to 4.8% of the group’s market capitalisation.

In the current financial year, UK full-price sales have risen by 6.6%, with online channels outperforming physical stores. International online sales were up 33% year-to-date and 38.3% in the nine weeks to 27 December, exceeding expectations.

However, stronger clearance rates offset the impact of higher stock levels in the end-of-season sale, adding £30m to group sales guidance. The financial year ending January 2026 is a 53-week year, with the extra week expected to contribute around £22m to profit before tax.

Looking ahead to 2026/2027, Next anticipates growth to moderate due to tougher UK comparatives and easing overseas growth after exceptional gains this year. The retailer highlighted the absence of one-off improvements in international stock availability that boosted current-year sales.

Read more at Yahoo Finance: Next lifts full-year profit outlook after strong Christmas trading