Next Warns of £47m Middle East Costs, Plans 8% Price Hikes

British fashion and homewares retailer Next has warned of nearly 50 million pounds in additional costs from the ongoing conflict in the Middle East, prompting price increases of up to 8 percent in some international markets outside Europe starting this month.

The FTSE 100 company raised its cost estimate to 47 million pounds for the current financial year, up from an initial projection of 15 million pounds issued in March. The higher figure accounts for elevated fuel, energy, shipping, and transport expenses linked to disruptions in the region, including the closure of the Strait of Hormuz in February, a key global oil shipping route. Next anticipates these issues persisting through the remainder of 2026, assuming fuel prices hold steady and supply chain problems neither improve nor deteriorate.

To offset the impact, Next plans moderate price hikes varying by country in select non-European international territories from May. "Price increases outside Europe will vary by country, but will be no more than 8 percent in any territory," the company stated. In the UK and Europe, prices will remain unchanged beyond the 0.6 percent rise already forecasted at the year's start. Next...