Next to reveal jump in profit despite rising costs and trade war uncertainty
Next is expected to post rising profits next week despite a string of costs increases hitting retailers and broader concerns about UK consumer confidence.
The retail giant will reveal its first quarter results on May 8, hot on the heels of profits of more than £1 billion last year.
Next, which has more than 450 stores across the UK, reported pre-tax profits of £1.01 billion for the year to January, up 10% compared with the previous year.
Its boss, Lord Simon Wolfson, said trading in the opening part of this financial year had been better than expected at the recent update.
Next raised its guidance for 2025-26 in response, pencilling in sales growth of 5% to £5.3 billion and profits up 5.4% to £1.07 billion.
But Next, like other retailers, has had to contend with a slew of cost increases since it posted its full-year results in March.
National insurance contributions (Nics), a tax which makes it more expensive to employ people, went up in April, along with the minimum wage.
Meanwhile, UK consumer confidence has also fallen to the lowest level in more than a year amid concerns that Donald Trump's trade tariffs could push up living costs, according to a recent poll by data company GfK.
And Next, which sells its products online to the US market, could also see a knock-on impact from Mr Trump's tariffs on sales.
Russ Mould, an analyst at AJ Bell, said Next has a 'knack of exceeding expectations – a knack it demonstrated again in March when chief executive Simon Wolfson nudged up expectations for full-price sales and pre-tax profits for the year to January 2026'.
He added: 'That positive steer has helped take Next's shares to new all-time highs, despite wider stock market volatility.'
Shares were up 27% for the year-to-date on Friday.
Next has already said it will have to raise prices by around 1% to offset the impact of Nics and minimum wage increases.
Its first quarter results come amid a string of cyber attacks against UK retailers, with Marks & Spencer and Harrods facing issues in recent days.
As of Friday morning, M&S was unable to process online orders after shutting down parts of its online systems to deal with a 'cyber incident'.
M&S first reported the issue over the Easter weekend but has seen its operations impacted for more than a week.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
37 minutes ago
- The Guardian
US and China ease trade war tensions by agreeing ‘framework' truce in London
Update: Date: 2025-06-11T06:23:08.000Z Title: Introduction: US and China agree to framework deal to restore trade war truce Content: Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. 'Jaw, jaw is better than war, war,' as Harold Macmillan once remarked. And after two days of talking in London, the US and China have managed to patch up their trade conflict truce. Just before midnight last night the two countries agreed a framework that, it is hoped, will ease tensions between the two economic superpowers. It will reinforce their initial agreement made in Geneva a month ago, once presidents Donald Trump and Xi Jinping have approved it. Speaking at Lancaster House last night, US commerce scretary Howard Lutnick said the trade framework and implementation plan agreed with China in London should result in restrictions on rare earths and magents being resolved. That had been a key demand for the US side, worried that American companies were being starved of vital supplies. Lutnick told reporters the US negotiating team will take the framework back to Trump to get his approval, and then hope to implement it. Lutnick says they had to get the 'negativity out' first when it comes to the US-China trade relationship. 'It's been President Trump's fundamental goal to reduce the trade deficit and increase trade. So this was the first step that the framework by which we will then approach… China's vice commerce minister Li Chenggang described the talks as 'rational and candid', telling reporters: 'The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5th and the consensus reached at the Geneva meeting.' The talks, which began on Monday morning, took longer than expected – with the two sides sustained by deliveries from restaurant chain Ottolenghi, McDonald's, Burger King and KFC. Food update at the trade talks at Lancaster House— the Chinese delegation is bringing in McDonald's, Burger King and KFC. Investors are now waiting for details of the agreement, and confirmation that it will satisfy Xi and Trump. Traders are also anticipating the latest US inflation report, which may show that the trade war has driven up prices in the shops. Economists predict the US CPI index will have risen to 2.5%, from 2.3%. While in London, chancellor Rachel Reeves will deliver the government's spending review, outlining day-to-day departmental spending for the next three years. 12pm BST: US weekly mortgage applications data 12.30pm BST: Chancellor Rachel Reeves to deliver UK spending review 1.30pm BST: US inflation report for May
Scotsman
an hour ago
- Scotsman
Can you afford not to have a cyber insurance policy?
Scott McLuskey helps clients find the cyber insurance policy that's right for them Cyber attacks cost Scottish businesses £386m annually – but most firms still aren't insured, warns Scott McLuskey Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Recent high-profile cyber incidents involving major UK institutions including Marks & Spencer, Harrods, and the Co-op are a stark reminder: no business is immune to attack. I first spoke about the importance of cyber insurance at the inaugural Cyber Scotland Week six years ago, an initiative supported by the Government to promote cyber resilience. Since then, the threat has only accelerated – today, a cyber-attack occurs every 44 seconds in the UK. Advertisement Hide Ad Advertisement Hide Ad Yet despite the scale of risk, many business leaders remain confident that their organisations are protected. Antivirus software, cloud backups, an in-house or outsourced IT Manager and a general belief that they're 'covered' often mask the reality: these measures alone are not enough. It wasn't just a cyber attack, it was an M&S cyber attack that cost millions (Picture: Adobe) Reports surrounding the recent attack on British retail heavyweight M&S suggest that the attack will cost an estimated £300 million and was not the result of poor systems, but of human error – a tale as old as time and the weakest link in any cyber defence strategy. Smaller businesses are also firmly in the firing line. Vodafone estimates Scottish SMEs are losing a combined £386m a year to Cyber Attacks, with 40% of SMEs falling victim last year alone. Costs following an attack can be significant: from forensic investigations, legal advice, regulatory notifications, and PR management, to lost revenue, extortion demands, credit monitoring, and potential lawsuits. The good news is that a cyber insurance policy offers a risk transfer solution to address these costs and assist recovery. Today's leading cyber policies also go beyond simple risk transfer – they include value-added services like vulnerability scans, penetration testing, and employee training. While not a substitute for a dedicated cybersecurity provider, these tools provide vital early protection and peace of mind. Advertisement Hide Ad Advertisement Hide Ad However, buying cyber insurance isn't always straightforward. With over 30 readily available cyber insurers – plus Lloyd's of London – and each provider offering a different proposition with their own minimum cyber security based acceptance criteria, the market can feel impenetrable. Unlike traditional insurance policies, cyber cover is still relatively new, with the first policy written in the late 1990s - the market and crucially insurer's loss data is continually developing. Compare that with buildings insurance, first developed in the wake of the Great Fire of London in the 17th century. As a result, there's wide variation in policy coverage, pricing, and – most importantly – what policyholders need to do to ensure claims are valid. Too often, businesses only realise this after a breach, when it's too late. There are promising signs. Leading providers like CFC Underwriting report a claims payout rate of over 99% and industry-wide improvements are being made in clarity, claims handling, and support services. But challenges remain – particularly for small and medium-sized businesses. Advertisement Hide Ad Advertisement Hide Ad A UK Government report found that 50% of businesses suffered some form of breach in the past year, rising to 70% among medium-sized firms. Yet just over half of all companies have cyber cover. Scotland's economy, built on a vibrant mix of SMEs, family-run firms, and fast-growing tech businesses, is particularly exposed. As the majority of organisations have digitised operations, even modest breaches can have a disproportionate impact – not only on individual companies, but on supply chains, customer trust, and investor confidence across the sector. Cyber resilience is no longer just a technical issue; it's an economic imperative. The Association of British Insurers has also identified a communication gap: cyber insurance is too often presented as a standalone 'product,' when in reality it's an ongoing service that begins before a breach and supports the business throughout. At Monteith, we're working to bridge this gap. We help clients understand their cyber exposure, decode policy language, and choose the right level of cover. Most importantly, we walk our clients through the fine print – ensuring they know exactly what's required to stay compliant, so their insurance delivers when it matters most. Advertisement Hide Ad Advertisement Hide Ad The threat isn't going away. Business leaders must go beyond firewalls and backups. They need to take proactive steps – including securing expert cyber insurance advice – to protect against what is now one of the most persistent and costly risks in modern business.
The Independent
2 hours ago
- The Independent
Asia shares climb after China and the US say they have a framework for seeking a trade deal
Asian shares mostly rose Wednesday after China and the U.S. said they had reached agreement on a framework for following up on the trade truce reached last month in Geneva. Japan's benchmark Nikkei 225 surged 0.5% in morning trading to 38,385.37. Data from the Bank of Japan data showed wholesale inflation slowed in May, meaning there might be less pressure for the central bank to raise interest rates in its next policy board meeting. Hong Kong's Hang Seng gained 0.8% to 24,364.77, while the Shanghai Composite rose 0.5% to 3,402.72. Australia's S&P/ASX 200 edged up 0.3% to 8,612.40. South Korea's Kospi added 0.6% to 2,889.88. Tuesday on Wall Street, the S&P 500 rose 0.5% to 6,038.81 as the trade talks between the world's two largest economies carried into a second day. The Dow Jones Industrial Average added 0.2% to 42,866.87, and the Nasdaq composite gained 0.6% to 19,714.99. Stocks have roared higher since dropping roughly 20% below their record two months ago, when President Donald Trump shocked financial markets with his announcement of tariffs that were so stiff that they raised worries about a possible recession. Much of the rally has been due to hopes that Trump would lower his tariffs after reaching trade deals with countries around the world, and the S&P 500 is back within 1.7% of its record set in February. Analysts said that after two days of discussion in London, the late-night agreement reached appeared to be a consensus on what was already agreed upon before. 'So what did 48 hours of talks actually produce? Apparently, a reaffirmation to eventually do what they had already said they would do. If markets were expecting substance, they got process instead,' said Stephen Innes, managing partner at SPI Asset Management. U.S. Secretary of Commerce Howard Lutnick said Tuesday evening in London that talks with China were going 'really, really well.' Both the United States and China have put many of their tariffs announced against each other on pause as talks continue. Even though many tariffs are on hold for the moment, uncertainty over what is to come is still affecting companies and their ability to make profits. Designer Brands, the company behind the DSW shoe store chain, became the latest U.S. company to yank its financial forecasts for 2025 because of 'uncertainty stemming primarily from global trade policies.' The company, which also owns the Keds, Jessica Simpson and other shoe brands, reported a larger loss for the start of the year than analysts were expecting, and its revenue also fell short of forecasts. CEO Doug Howe pointed to 'persistent instability and pressure on consumer discretionary' spending, and the company's stock tumbled 18.2%. The uncertainty is moving in both directions, to be sure. A survey released Tuesday of optimism among small U.S. businesses improved a bit in May. 'While the economy will continue to stumble along until the major sources of uncertainty are resolved, owners reported more positive expectations on business conditions and sales growth,' according to Bill Dunkelberg, chief economist at the National Federation of Independent Business. Tesla helped to make up for such losses by rising 5.7%. The electric vehicle company has been recovering since tumbling last week as Elon Musk's relationship with Trump imploded. That raised fear about possible retaliation by the U.S. government against Tesla. Shares that trade in the United States of chipmaking giant Taiwan Semiconductor Manufacturing Co. rose 2.6% after the company known as TSMC said its revenue in May jumped nearly 40% from the year earlier. In other dealings early Wednesday, the yield on the 10-year Treasury eased to 4.48% from 4.47% late Tuesday. Benchmark U.S. crude oil slipped 12 cents to $64.86 a barrel. Brent crude, the international standard, fell 15 cents to $66.72 a barrel. The U.S. dollar rose to 144.94 Japanese yen from 144.84 yen. The euro cost $1.1414, down from $1.1425. ___ AP Business Writer Stan Choe contributed.
