Next consensus shapes the view, shares reflect cautious retail sentiment

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-28, 09:02.

Next (GB0032089863) sits in a central position among UK-listed fashion and home retailers, with the stock traded on the London Stock Exchange in sterling. The current focus for investors is the analyst consensus on profits and sales for the coming financial year, compiled after the latest sector data on consumer spending.

What analysts expect on earnings

Consensus data from platforms such as MarketScreener and major brokers shows that most analysts cover Next as a core UK retail name, alongside peers Marks & Spencer and JD Sports, and model only modest earnings growth in the next two years. Several houses, including UBS and Goldman Sachs, expect UK apparel demand to remain subdued as inflation and higher mortgage costs pressure disposable income, leading to cautious revenue assumptions for retailers.

Average forecasts for Next point to low single-digit percentage growth in group revenue and operating profit, with analysts highlighting the importance of cost control and inventory discipline in a price-sensitive environment. Research notes published after recent UK retail sales data emphasize the resilience of established brands but underline that any margin expansion is likely to be incremental rather than sweeping, given promotional activity across the sector.

How Next compares with sector peers

In sector comparisons, Next is often benchmarked against Marks & Spencer, JD Sports and Primark-owner Associated British Foods, with analysts reviewing relative valuation multiples such as price-to-earnings and enterprise value to EBITDA. Recent commentary from UK-focused brokers points out that pure-play fashion chains with younger customer bases, like JD Sports, can show higher growth rates, while Next benefits from a broader age range and homeware exposure.

Valuation analysis typically places Next in a mid-range position within the UK retail universe, with neither a marked discount nor a pronounced premium to peers when adjusted for profitability and online penetration. Several notes argue that the company’s long-standing catalogue and online platform justify a slightly more robust rating than some smaller chains, but stress that macro headwinds limit any upside re-rating in the near term.

The business behind Next’s revenues

Next generates revenue primarily through its Next-branded stores and online platform, offering clothing, footwear and home products targeted at mid-market consumers in the UK and selected international markets. The company also runs the Next Directory, a long-established mail-order and now digital catalogue service that has transitioned into a modern e-commerce operation with integrated logistics.

Where the stock trades today

The Next shares (GB0032089863) trade on the London Stock Exchange, with the latest verifiable price in British pounds reflecting the company’s position in the UK retail sector at the most recent close.

Disclaimer: This article is for informational purposes only and does not contain investment advice, recommendations or solicitations to buy or sell securities. Data and estimates are based on publicly available sources believed to be reliable but may change without notice.