Next Navigates Price Hikes Amid Middle East Conflict

British clothing retailer Next announced its strategy to mitigate rising costs due to the ongoing conflict in Iran. The retailer plans to implement "moderate" price increases in select international markets while identifying cost savings elsewhere.

European apparel retailers, including H&M, have expressed concerns that a prolonged Middle East crisis could increase prices and reduce consumer demand. Defying industry fears, Next reported a 6.2% rise in full-price sales for the first quarter ending May 2 and adjusted its full-year profit guidance upward.

The boost in first-quarter sales was attributed to strong growth in the initial weeks of the year, predating the Middle East conflict. Looking ahead, Next forecasts a profit before tax of £1.218 billion ($1.65 billion) for 2026/27, exceeding previous expectations. Despite this positive outlook, Next's shares have fallen by 5% this year.

(With inputs from agencies.)