Next is consistently one of the top performers in UK (and increasingly global) retail and Thursday saw it delivering more evidence of that as the firm reported its results for the year to January.
Next
Next full-price sales rose 5.8% with total group sales including its subsidies rising 8.2% to £6.321 billion. Group profit before tax was up 10.1% to £1.011 billion and profit after tax rose 8.5% to £761 million.
And more good news was that full-price sales in the first eight weeks of its new financial year have been ahead of its expectations. As a result it’s upgrading it’s full-price sales guidance for the first half to an increase of 6.5% compared to the 3.5% previously expected. Sales for the full year should also be up 5% rather than 3.5% as previously guided. And group pre-tax profit should be £1.066 billion. That’s £20 million higher than it had expected and would represent a rise of 5.4%.
In the latest year, not all of the figures were positive but the overall result was a strong one for the company. For instance, within ‘UK Retail’ (that is, UK retail stores), full-price sales for the Next brand were down 2% but wholly-owned brands and licenses (WOBL) were up 2%, with third-party brands up 31%. The overall UK Retail total was down 1% at £1.849 billion.
Looking at e-commerce, UK Online was up 3% and WOBL online up 4%, with third-party brands up 10% for a total of a 5% increase to £2.54 billion.
Combined, UK Retail and UK Online was flat for the Next brand, while for WOBL it rose 4%, third-party brands rose 11% and the total rose 3%.
Sales via international Next websites rose 14% for the signature brand and 28% for WOBL, while third-party brands rose 50% for a total of 20%.
Via international third-party aggregators the Next brand rose 19% while WOBL surged over 200% and third-party brands more than doubled for a total sales rise of 25%.
And when taking the international Next websites and international third-party aggregators figures together, total Next brand sales internationally jumped 19%, while WOBL rose 61%, third-party brands rose 51% and international sales as a whole rose 25%.
Reaching out to the world
The company said the Next brand is “growing beyond the constraints of its own infrastructure”. It’s no longer limited by the reach of its UK infrastructure and customer base with the ability to tap into overseas third-party distribution networks having allowed its international websites to grow their sales by 350% in the last 10 years.
The Next brand has also gained traction through international platforms such as Zalando in Europe and Nordstrom in the US. In fact sales through third-party platforms grew 36% last year and now account for 30% of the company’s international business.
Next
The firm is clearly growing fast beyond its UK base and said that while it’s wary of “grand visions”, if global fashion tastes continue to converge then it’s likely that, online at least, “a small number of increasingly global brands will serve more and more of the worlds fashion needs”. It’s aiming to create ranges that are strong enough for it to earn its place as one of those brands.
But the group also cautioned that this isn’t just about having a grand ambition, it’s about building a business that can be hugely profitable and it knows that it’s success isn’t predestined.
Tariffs not a problem
Given its international plans, Next also addressed the current situation with tariffs and planned changes to the de-minimus rule in multiple countries that aim to close import duty-free loopholes exploited by global fast-fashion firms.
It said the introduction of new tariffs in the USA, along with the removal of de-minimis customs thresholds in the US and EU (the latter planned for 2028), are “currently anticipated to have relatively little impact on the overall group’s sales or profits”.
In the EU, 71% of its business is currently sold by an EU domiciled subsidiary and won’t be affected by the removal of the de-minimis rule. The balance is sold from a UK company and imported by the consumer, which will attract additional duties in 2028. But the estimated net cost of these additional EU duty liabilities is estimated to be less than £1m.
And it added: “As a group, Next has very little business in the USA. However, we and our subsidiaries are making arrangements to trade through a US entity, which we believe will eliminate the net cost of the removal of de-minimis thresholds. The volume of goods the group imports to the US from China is negligible.”
From Warsaw, with love. That could have been the footnotes for the Polish brand Magda Butrym and Swedish behemoth H&M‘s celebration of their collaboration, which is set to debut on April 24.
Magda Butrym and VIP guests at H&M’s rose-themed celebration in Brooklyn. – Photo credit: Lucas Possiede / H&M
The celebration took place in an architecturally stunning former bank reminiscent of European spaces and was attended by a mainly female crowd with VIP guests such as Chloë Sevigny, Iris Law, Irina Shayk, and German influencer and model Nara Smith. It featured performances by Charlotte Lawrence and Kelela.
FashionNetwork.com caught up with the designer and H&M’s creative advisor, Ann-Sofie Johansson, to discuss this latest pair-up.
Ann-Sofie Johansson and Magda Butrym at H&M’s collaboration event in Brooklyn. – Photo credit: BFA / H&M
“She’s brilliant and the first Polish designer we’ve collaborated with. It’s great to find talent all over the world, outside of the four fashion cities, and show their creativity,” Johansson said in between photos of VIP guests. “It’s also nice to pick someone that might not be known outside of the fashion industry, and she is also a woman owning and operating an independent brand. Her designs are beautiful and feminine, and our customers will love them,” she added.
Despite collaborating with designer brands for over 20 years, the Swedish retailer still finds each unique. “With Magda, it was quite intimate because she has a small team of designers and pattern makers. Our first meeting was in Warsaw; our team had never been there. So, it was nice to see her within her city and vibe,” she added.
Seeing her in her element influenced the event, as did serendipitous logistics as Butrym headed to New York for her project. “It all came together here, and New York is New York. Everyone wants to come here to experience all the energy here, including all the people,” Johansson continued.
Despite being in New York City, the Swedes and Butrym gave the event a magical fantasy vibe. As guests entered the landmark 1929 Byzantine-Romanesque-style former Williamsburgh Savings Bank located in Fort Greene, Brooklyn—with its cavernous 60-foot vaulted ceilings, arched windows, mosaic floors, tinted glass windows, and a 17-year-old Polish opera prodigy from Chicago singing from the balcony—it was easy to mistake the space for a church. The room was bathed in pink lights and adorned with fresh rose sculptures, and the furniture was draped with white fabrics. As a centerpiece and nod to Butrym’s signature rose was a massive pink fabric sculpture resembling a rose that hung from the ceiling.
Ann-Sofie Johansson, H&M’s creative advisor, at the rose-filled venue in Brooklyn. – Photo credit: BFA / H&M
“Each event has to reflect the designer,” Johansson said of the ambiance. “We want to enter the designer’s universe, their world. The rose, for example, is one of Magda’s signatures. So, what she wants that can ‘rhyme’ with H&M is what we stand for. In her case, it’s about beauty, and we need some beauty right now,” she added.
For Butrym, the past week spent in New York—with husband and child in tow—has been a bit surreal and busy, as she just opened a Magda Butrym pop-up store in SoHo, marking her second retail venture, as she opened a flagship store in Warsaw last year.
“When we drove over the Brooklyn Bridge to get here tonight, it hit me, and I still don’t believe it even now that I’m saying it. It’s overwhelming,” Butrym said, describing her awe of being in the Big Apple for such important brand moments. “The pop-up is so adorable; it’s all done in crochet and really romantic,” she added.
According to the designer, the Swedish team at H&M made things seamless. “They sent us a document of their thoughts about the brand and what they love. Since I am making a new collection every three months, it was really helpful because I didn’t have time to go back to the archives,” Butrym said as her guests posed for photos in front of the giant rose and sipped pink cocktails and champagne.
“It was a great exercise for me and my team because when you do the main collection, you are constantly pushing the thing. It was revisiting these styles and imagining them differently. So, let’s show the flower in a different way or a different style in a new shape. This was adapting it to something else, thinking, what would people love to have? The clients see my designs on celebrities; now they will have this part of my world. This project was a pleasure for me,” she added.
The collection includes a sexy, clingy red dress with rosettes on the bust worn by Law and another rouge style worn by Smith, recalling a bouquet of roses. Shayk wore sharp black tailoring, while Gray wore a black jersey top with a sculptural flower detail at the neck and a matching long-line skirt. Valentina Sampaio wore the collection’s striking burgundy leather trench, and Sevigny wore a stretch mini dress with the collection’s iconic rose print.
Butrym was also thrilled about bringing the opera singer to share some Polish culture. “She was singing in Polish, so it’s very important to me. You hear Polish songs. It’s amazing that this little country has a moment here in Brooklyn,” she reflected.
With the return of Stockholm Fashion Week, it would seem fitting that the designer shows there, but Johansson doesn’t imagine that happening. “She’s on the official Paris schedule and has shown there for the first time. That is a big thing, so I am sure Magda will continue with that,” Johansson said. In any case, while it sounds like she will stick with her European allies for her new collection debuts, thanks to Sweden, the rest of the world will have a chance to discover Butrym’s oeuvre.
Bigger and better continues to be the theme among major retailers and Primark’s expanded new space at the White Rose Shopping Centre in Leeds is being billed as “significant” by landlord Landsec.
Photo, Sandra Halliday
Expected to be complete in 2027, the doubling of Primark’s Rose White footprint (from 26,200 sq ft to 55,700 sq ft) “comes as many brands continue to prioritise better and bigger stores at the best-located and highest-footfall destinations across the UK”, noted Landsec.
And it’s the latest of a series of flagship brand investments at White Rose, with Primark’s expansion following JD Sports tripling its space last year with a new 15,537 sq ft store.
“This expansion and growing breadth of new retail, food, beverage and leisure experiences has contributed to Landsec reporting record-breaking footfall for the second consecutive year at White Rose Shopping Centre”, the operator said, noting that over 12 million people visited the destination in the last year, a year-on-year increase of 4.3%.
Landsec also said its retail portfolio “continues to demonstrate strong performance with occupancy now exceeding pre-pandemic levels at 96% and regularly outperforming industry footfall benchmarks”.
Primark has also begun expanding the ‘lifestyle’ aspect of its retail offer, announcing the opening of its first-ever standalone ‘Primark Home’ store in Northern Ireland in March. Spanning around 8,700 sq ft. Primark calls it an “exciting new venture marking a significant milestone”.
JD Williams and Gok Wan have launched an ‘Empowering SS25 Collection’ accompanied by a strong campaign targeting women in midlife.
That campaign, ‘We See You’, launches after a survey revealed 60% of women “feel invisible in midlife… especially while shopping for clothes or in social situations with younger generations”.
And the retailer and stylist add: “Midlife isn’t about slowing down or feeling apologetic for wanting to be seen – it’s about embracing a new chapter full of confidence, adventure, and self-assurance”.
Developed using insight “from hours of customer research, the campaign is a new, more confident expression of the brand’s midlife specialism”.
The campaign “aims to shatter outdated stereotypes” and “celebrates the rebellious spirit, energy, and effortless style of midlife women, empowered, stylish, and unapologetically themselves”.
“Redefining the midlife dress code”, the collection features “vibrant swimwear, effortlessly chic tailoring, and stylish yet comfortable dresses” with options for every occasion”
It will drop throughout April, May and June on jdwilliams.co.uk in sizes 8-32 and starting from £18 in price.
Esme Stone, head of Brand at JD Williams said: “For too long, midlife women have been overlooked by fashion brands and misrepresented by society. It’s time to flip the script.
“Midlife isn’t about slowing down or feeling apologetic for wanting to feel seen – it’s about embracing a new chapter full of confidence, adventure, and self-assurance. Our ‘We See You’ campaign is about celebrating and empowering women who are rewriting the rules and embracing this vibrant life stage with unapologetic style and strength.
Stone added: “Every piece has been curated to empower women to dress with confidence, embrace bold colours, and make a statement wherever they go.”