RBC Sees Next plc's Fiscal Q4 International Sales Outlook as 'Conservative'

03:51 AM EST, 11/10/2026 (MT Newswires) -- RBC Capital Markets views Next plc's (NXT.L) fiscal fourth-quarter international sales outlook as cautious, following the British retailer's better-than-expected third-quarter sales and noting a "strong" overseas growth story. "We think NEXT is being conservative in its international sales guidance for Q4 (+20% yoy) as its ZEOS comp is tougher in Q4, but not 12pp tougher. Given the strength of NEXT's offer and digital marketing, we think Q4 international sales growth should be closer to 30% than 20% yoy," according to a Monday report focused on European retailers. Against this backdrop, RBC analysts maintained the high end of their profit before tax estimates or fiscal 2027 to 2028, with expectations of "slightly higher" international profits and "slightly lower" UK retail profits. They also lifted the outperform-rated stock's price target to 175 pounds from 170 pounds to reflect recent peer rerating due to a "slightly better" working capital outlook. "NEXT has offered investors a strong online and cash-returns story historically. It should continue to benefit from its broad range of brands and strong omnichannel offer, with fast, highly automated logistics and a well-developed customer base," the research firm said. "We also think NEXT has potential to develop further its high-return Total Platform business for other brands, to leverage its strong systems and online warehousing and distribution."