Is NXT.L (NEXT plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, NXT.L is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (12.19% vs ≤33% threshold), interest income ratio (0.13% vs ≤5% threshold), and cash & securities ratio (1.31% vs ≤33% threshold).

NEXT plc is a cornerstone of British high-street retail, specializing in clothing, footwear, and home products across the UK, Europe, and Asia. Beyond its physical stores, the company operates a robust online platform and manages brands like Lipsy, while also sourcing products globally through its NEXT Sourcing division. Its business model blends traditional brick-and-mortar retail with a significant digital presence , making it a major player in the consumer cyclical sector. For Muslim investors, NEXT plc is classified as Halal, passing all four AAOIFI shariah screening criteria. This is significant because retail giants often carry high debt loads, but NEXT maintains a conservative balance sheet that aligns with Islamic principles. The passing of both the debt and liquidity screens indicates that the company is not overly leveraged or hoarding excessive cash in interest-bearing accounts. Financially, the company demonstrates strong discipline with a Debt-to-Market Cap ratio of 12.2% and cash holdings at just 1.3 % of market cap. While the company does operate 'NEXT Finance'—a consumer credit arm that generates interest—the reported interest income relative to total revenue stands at only 0.13%, which is far below the 5% imper missible income threshold. This suggests the vast majority of its revenue comes from legitimate retail sales. Investors should continue to monitor the growth of the NEXT Finance division. While currently negligible in the context of total revenue for screening purposes, any significant expansion of their interest-based credit offerings could potentially impact the 'Interest Income' ratio in the future. However, at present, the stock remains a compliant option for those seeking exposure to the UK retail market. NEXT plc operates in the Consumer Cyclical sector under the Apparel - Retail industry and is headquartered in Enderby, GB. The company is led by CEO Lord Simon A. Wolfson and employs approximately 32,931 people.

NXT.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. NXT.L passed 4 of these 4 screens.

Although NXT.L passes all shariah screens, it does earn $8.2M in interest income (0.13% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.13 to purify the income.

NXT.L was last screened on 2026-02-24. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.