Next to hike prices by up to 8% outside Europe due to Iran war costs

Fashion retailer Next plans to raise prices by up to 8% in some countries outside Europe, citing an additional £47m in costs from higher fuel prices and supply chain disruptions linked to the Middle East conflict [1]. The company said the increased costs are due to the war in the Middle East, which caused fuel prices to skyrocket and disrupted key shipping lanes [1]. Next had initially anticipated £15m in extra costs for the first three months of the conflict but now forecasts the full-year impact to be £47m [1]. The retailer stated it will offset these costs through measures including international price increases and savings, with no need for additional price hikes in the UK and Europe [1]. In the UK, increased costs will be offset by "cost savings and margin gains," and price rises are not expected to exceed the 0.6% forecast at the start of the year [1]. Next reported a 6.2% increase in full-price sales for its first quarter, with UK sales rising 4.4%, better than expected [1]. The company increased its full-year profit forecast to £1.22bn [1]. International sales fell when the conflict began but have since seen a significant recovery, though growth remains below pre-conflict levels [1]. The group forecasts full-price sales growth of 5.0% for the full year [1]. Shares in Next are down 5% so far this year [1]. Other European clothing chains, including H&M, have warned that a prolonged conflict will push up prices and dent consumer demand [1]. Pandora's chief executive, Berta de Pablos-Barbier, told the BBC that consumer confidence "is not that high today" due to high inflation and interest rates [1].