Next Reports Bumper Christmas with £1.15bn Profit Forecast Amid Job Market Woes

UK fashion retailer Next reported a strong Christmas performance, raising its full-year pre-tax profit forecast to £1.15 billion—£15 million above expectations—for the year ending 31 January 2026. The company attributed the surge to a 10.6% sales increase in the nine weeks to Christmas, driven by the cyber attack on rival Marks & Spencer, favorable summer weather, and improved stock levels. However, Next cautioned about a difficult first half of 2026 in the UK, citing a worsening jobs market with unemployment rising to 5.1% since July 2024. The warning contrasts with the struggles of other retailers like Claire's and The Original Factory Shop, which face potential collapse. Supermarkets also saw record spending, with December grocery sales reaching £13.8 billion.