Next Reports Record £1bn Profits, Raises Guidance Despite Economic Concerns

Next, the high street retail giant, has reported record pre-tax profits of £1.01 billion for the year ending January 2025, marking a 10.1% increase from the previous year. Despite the positive financial results, Chief Executive Simon Wolfson expressed concerns about the potential negative impact of upcoming UK tax rises on employment and consumer confidence. The retailer's sales rose 8.2% to £6.3 billion, driven by strong overseas growth, although like-for-like sales fell 1.2% due to challenging economic conditions. Next has upgraded its sales forecasts, expecting a 6.5% growth in the first half of 2025, up from an earlier estimate of 3.5%. Wolfson cautioned against excessive regulation and government debt, emphasizing that the burden on big businesses ultimately affects ordinary consumers. The company aims to offset rising labor costs with increased efficiency and new technology in its operations.