Next reports stronger-than-expected first-half revenue driven by broad-based demand outside the UK, prompting share price gains despite a slight earnings miss. The retailer also boosts shareholder dividends and buybacks with positive growth momentum.
NEXT said first-half revenue beat expectations, helping to lift its shares after a solid update on trading. According to Investing.com, the retailer posted revenue of $3.45 billion, above forecasts of $3.25 billion, while earnings per share came in at $3.59, just short of the $3.63 expected by analysts. The market response was positive, with the stock rising 2.47% to $14,920, as investors focused more on the sales momentum than the modest profit miss.
The stronger top-line performance was driven by broad-based demand, particularly outside its home market. Investing.com reported that total group sales rose 9.0% and profit increased 10.5%, with international operations performing especially well. Growth in owned and controlled brands, along with third-party labels, accounted for more than two-thirds of the expansion, underlining the appeal of NEXT’s product mix.
The company also continued to return cash to shareholders through buybacks and a higher interim dividend, even as net debt increased. Investing.com noted that NEXT’s valuation, at a market capitalisation of about $12.5 billion and a price-to-earnings ratio of 21.3, leaves it looking fairly priced by historical standards. Over the past 12 months, revenue has grown 17%, adding support to the view that the business remains in a healthy trading position despite the slight earnings disappointment.
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