Next week on the stock market

Next looking to continue its strong sales growth

Next heads into its full-year results with good momentum. Full-price sales were up 10.6% in the nine weeks to 27 December, well ahead of the group’s guidance for the Christmas period. The positive surprise was driven by strong performances in both the UK and overseas, with the latter continuing to grow at a high double-digit pace. That led to full-year pre-tax profit guidance being upgraded yet again, with nearly 14% growth to £1.15bn now expected at next week’s results.

Looking ahead to the coming year, the group expects pre-tax profit growth to simmer slightly, rising by around 4.5% to £1.2bn. But this outlook was announced before the recent spike in oil prices. As a leader in the UK market, we think Next is well-positioned to navigate challenging conditions better than many of its peers. So we’re keen to hear how much of an impact this additional inflationary pressure is expected to have on the group’s costs and consumer demand.

Carnival’s guidance in focus as fuel prices surge

Carnival ended 2025 with strong momentum, giving management the confidence to provide guidance for mid-single digit growth in underlying cash profit (EBITDA) this year to around $7.6bn. First-quarter numbers tend to be the lowest contributor, but consensus forecasts suggest a small improvement in next week’s result to $1.3bn. However, it’s the peak summer season later on in the year that’s the real dial mover.

The outbreak of conflict in the Middle East has caused significant disruption to the Cruise industry. Carnival looks like it may have less direct exposure than some rival fleets, but we’re mindful of the potential for security concerns to weigh on demand. Soaring marine fuel prices are perhaps the larger concern, and we’ll be keen to hear how that’s impacting the profit outlook.

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