Next to mitigate Iran war costs with 'moderate' price rises

Clothing retailer Next plans to mitigate the cost increases caused by the Iran war with "moderate" price rises in some international markets and cost savings elsewhere, it said on Wednesday.

European apparel retailers, including H&M, have warned that a prolonged Middle East conflict will push up prices and dent consumer demand.

Next also reported a better-than-expected 6.2% rise in full price sales for its first quarter to May 2 and edged up its full-year profit guidance.

It said the first quarter sales beat was the result of exceptionally strong growth in the first five weeks of the year, before the Middle East conflict began.

For 2026/27, the group is now forecasting profit before tax of £1.218bn (€1.4bn), up from its previous forecast of £1.210bn and versus the £1.158bn it made in 2025/26.

The group forecast full price sales growth of 5% for the full year.

Shares in Next are down 5% so far this year.