Next has stated that it expects the UK economy to display "anaemic growth" in the medium- to long-term, after the clothing and homeware retailer recorded a 13.8% year-on-year in its profit before tax to £515m.

The firm’s group sales jumped by 10.3% to £3.25bn in the six months to July 2025, beating its previous guidance, while its post-tax earnings per share increased by 16.8% to 330.2 pence.

Next said its first half performance was driven by favourable weather, major disruption at M&S and growth across its international sector.

Despite this growth, the retailer said that its enthusiasm for its "many opportunities is grounded in a cautious realism".

Its cautious approach has also been amplified by its outlook on the UK economy, which it said "does not look favourable".

While stating that it does not believe the UK economy is approaching a cliff edge, it expects "anaemic growth" at best as a result of declining job opportunities, new regulations, Government spending commitments and a rising tax burden.

However, Next said that it is in a good place, with multiple opportunities for growth, in spite of challenges presented by the UK economy.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, concluded: "The fashion powerhouse is clearly unimpressed by the current government’s performance, which has brought about declining job opportunities, unfavourable regulation, unsustainable government spending, and rising taxes that make it harder for the economy to grow.

"Despite these challenges, Next is in a strong position to continue dominating the UK market. Strong demand in its online channel remains a running theme, and it’s likely to remain the main growth driver. It already makes up more than half of group sales, and with international expansion still in its early days, growth abroad is powering ahead — up an impressive 33%.

"Around 90% of its overseas business comes from Europe and the Middle East, both of which can be serviced quickly and cheaply from the UK. Given the untapped size of these markets, there’s a big opportunity if Next can execute its expansion plans well, providing the potential for upside to current full-year guidance."

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