Tear Sheet: Next PLC

This report does not constitute a rating action. . Next continues to outperform the market, with its brand beginning to get international recognition--including third-party aggregators like Zalando in Germany and Nordstrom in the U.S. This is supported by its decision to increase marketing spend in these markets, while the larger group is also benefitting from broader fashion trends that influence consumers toward buying fewer, slightly more expensive items. We expect a 6% increase in Next's revenues (excluding captive finance) in fiscal 2025 (year ending January 2026). While input cost inflation eases, elevated operating costs, including wages and National Insurance contributions, pose challenges. We forecast Next's S&P Global Ratings-adjusted EBITDA margin to improve slightly to 21.0%-21.5% in fiscals 2026 and 2027,

...June 4, 2025 This report does not constitute a rating action. We believe that Next PLC's operating performance in fiscal 2025 will remain resilient, despite significant uncertainties and growing risks within the U.K. economy. Next continues to outperform the market, with its brand beginning to get international recognition--including third-party aggregators like Zalando in Germany and Nordstrom in the U.S. This is supported by its decision to increase marketing spend in these markets, while the larger group is also benefitting from broader fashion trends that influence consumers toward buying fewer, slightly more expensive items. We expect a 6% increase in Next's revenues (excluding captive finance) in fiscal 2025 (year ending January 2026). While input cost inflation eases, elevated operating costs, including wages and National Insurance contributions, pose challenges. We forecast Next's S&P Global Ratings-adjusted EBITDA margin to improve slightly to 21.0%-21.5% in fiscals 2026 and 2027,...

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