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

LONDON, May 6 (Reuters) - British ​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 1.218 billion pounds ($1.65 billion), up from its previous forecast of 1.210 ⁠billion pounds ⁠and versus the 1.158 ‌billion pounds it made in 2025/26.

The group forecast full price ​sales ​growth of 5.0% for the full-year.

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

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