The Next share price had a great performance in 2025 as its growth trajectory continued. NXT rose by 44% this year, beating the FTSE 100 Index, which jumped by ~20%. This article explains why the retailer soared and what to expect in the coming year.
Next share price jumped as growth accelerated
Next PLC is a top British company offering fashion and home items through its retail stores and e-commerce platforms. Its business has accelerated even as other companies like Asos and Boohoo have struggled in the past few years.
The stock jumped after the company released its half-year results and its trade statement recently. Next’s sales rose by 10.3% in the first half of the year to over £3.24 billion.
Most importantly, its cost discipline helped its profits to grow faster than its revenues. Its profit before taxes rose by 13.8% to £515 million, while its profit after tax jumped by 13.4% to £387 million.
The company’s growth trajectory was driven by its international business, which continued beating the domestic segment. Its international revenue rose by 28% in the year’s first half, much higher than the UK’s 8%.
The picture was much better in the third quarter as UK sales rose by 5.4%, while overseas sales rose by 38%.
The management has continued to invest its marketing budget to capture more clients from overseas. These investments are paying off as the sales trajectory has accelerated. Also, the international business is closing the gap with its British segment.
Next PLC share price jumped as the company boosted its forward guidance. It now expects that its fourth-quarter revenue growth will be between 4.5% to 7%, with its full-year profit guidance being £1.13 billion, up by £30 million from the previous estimate.
Next’s stock also jumped as the company continued rewarding its shareholders. It is doing that by repurchasing its stock. It bought shares worth over £131 million this year and has over £500 million available to distribute.
However, the company has paused its share repurchases because the stock has moved much higher than the buying limit of £121. Next’s repurchases have helped to reduce its common outstanding shares to 116.6 million from the 2021 high of 127 million.
Still, a key issue with Next is that it has become relatively overvalued, with its forward P/E ratio of 18 being higher than its historical average.
Next PLC stock price technical analysis
The daily chart shows that the Next stock price jumped from a low of 8,848p in January this year to a high of 14,550p in November. It formed an up-gap on October 28, which it has now filled.
The stock has formed a bullish flag pattern, one of the most common continuation signs in technical analysis. This pattern is made up of a vertical line and a descending channel.
Therefore, there is a likelihood that the Next share price will have a bullish breakout, potentially to the year-to-date high of 14,550p. A move above that level will point to more gains, potentially to 15,000p in 2026.
READ MORE: Next PLC share price sits at its all-time high: it’s still a bargain
The post Here’s why the Next share price jumped and beat the FTSE 100 Index in 2025 appeared first on Invezz