Next hikes annual profit forecast as warm weather and turmoil at M&S boost sales

By EMILY HAWKINS

Updated: 22:01 BST, 8 May 2025

Next has raised its annual profit forecast as warm weather lifted sales while rival Marks & Spencer haemorrhages business due to a cyber hack.

Chief executive Lord Wolfson said Next sales rose 11.4 per cent in the 13 weeks to April 26 as summer ranges proved popular.

It took in £55million more than expected, leading Wolfson to upgrade profit forecasts by £14million to £1.08billion.

It was the 11th profit upgrade by the retailer in the past three years, underscoring its knack for defying gloom elsewhere on the High Street.

By contrast, hackers have frozen rival Marks & Spencer’s online business, costing it millions and leaving shelves empty.

The attack – thought to be launched by teenagers in a shadowy cyber gang – occurred just a few days before the end of Next’s first quarter.

Bumper trade: Next took in £55m more in revenues than expected, leading it to upgrade profit forecasts by £14m to £1.08bn

It did not comment on whether its sales benefited after M&S paused orders on its app and website over a week ago.

Retailers including Harrods and the Co-op have also been targeted. But Adam Vettese, market analyst for online trading platform Etoro, said: ‘There could be some tailwinds into the second quarter, such as rival M&S online systems being down due to a cyber-attack.

‘A portion of this £4million a day lost in sales could find its way into Next’s coffers.’

Jonathan De Mello, founder of consultants JDM Retail, said: ‘M&S will have lost some custom to competitors.’

Next and M&S both sell third-party brands on their website to entice younger shoppers.

The upgrade cemented Wolfson’s reputation as a boss who under-promises and over-delivers, and shares rose 0.5 per cent, or 55p, to 12,350p. Next reported £1billion annual profits for the first time earlier this year.

It is just the fourth British retailer behind Tesco, Marks & Spencer and B&Q owner Kingfisher to hit this milestone.

And it now expects profits to be 6.8 per cent higher than last year’s £1.01billion, while annual sales are set to hit £5.4billion.

Next has said that it will open ten stores this year and move six of its shops to new locations.

But the retailer was typically cautious about the months ahead and did

not raise its sales guidance for the current quarter.

Echoing previous comments, Next said it was ‘more cautious’ about future sales as it believes the ‘full effects’ of Labour’s £25billion raid on National Insurance contributions ‘will begin to filter through to the wider economy in the second half’.

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Next hikes annual profit forecast as warm weather and turmoil at M&S boost sales

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Next hikes annual profit forecast as warm weather and turmoil at M&S boost sales