How Next Built One of Retail’s Most Profitable Models
Disciplined inventory control, a capital-light platform and margin-first retailing are
Earnings
LVMH (France) reported Q4 revenue rose 1% to €23.9 billion. Full revenue fell 2% to €84.7 billion ($88 billion), with net profit down 17% to €15.2 billion. Revenue for the fashion and leather goods group was down 3%, with profits falling 10%.
Levi’s (USA) reported Q4 net revenue rose 12% to $1.8 billion. Revenue increased in all markets with the Americas +12%, Europe +15% and Asia +9. Revenue for other brands grew 10%. Net income rose 44% to $183 million.
VF Corp (USA) reported Q3 2025 revenue grew 2% to $2.8 billion. Revenue in the Americas and Europe rose 1%, while APAC was up 5%. Operating income was $225.8 million compared with a loss of $91.4 million a year ago.
H&M (Sweden) reported Q4 revenue rose 3% to $5.5 billion (SEK 62,193 million), with operating profit up 7%. Full year sales rose 1%, with operating profit up 19%. In both Q4 and the full year, sales saw low single-digit growth in Europe, while inching down in the Americas (-7%), APAC, Oceania and Africa (-5%).
Markets
Disciplined inventory control, a capital-light platform and margin-first retailing are
Brands wrapped up 2025 with stronger-than-expected earnings. However there are
Higher oil and energy costs are expected to squeeze discretionary
A fragile revenue recovery is facing pressure from tariffs, higher
In uncertain markets, heritage brands are rediscovering that reputation, craft,
Asia and South America are driving retail expansion, but success