Next PLC, the U.K. fashion retailer, revised its 2025‑26 fiscal outlook after a surprisingly strong first quarter. The group now projects group sales growth of 4.6% versus the prior 4.2% forecast, while full‑price sales are expected to climb 5% against an earlier 4.5% target. The lift reflects higher margins and a rebound in domestic demand.

Full‑price sales jumped 6.2% in the first quarter ending May 2, beating the 4% rise the company had projected. International operations suffered a service disruption in the Middle East, but recent weeks show a notable recovery, although growth has tapered off from the first five weeks of the year for the retail sector ahead of market expectations.

To counter rising costs from the Iran conflict, Next plans selective price increases and cost‑saving measures across its supply chain. The company’s revised pretax profit forecast climbs to £1.22 billion, up from the earlier £1.21 billion estimate and a year‑ago figure of £1.16 billion. This adjustment signals confidence in the brand’s resilience amid geopolitical pressures for analysts and investors in the next.

The company’s performance will also influence broader U.K. retail sentiment, given its status as a market bellwether for analysts and investors in the next.