# Next to hike prices overseas as it faces higher Iran war cost hit

By Susannah Streeter — 2026-05-06

Susannah Streeter, chief investment strategist at Wealth Club, said: “Next has demonstrated it was in a highly resilient position before the Iran war began, with its wardrobe of brands attracting high demand.

“Its curated marketplace offering, helped power up transactions for an exceptional period of trading with sales up 6.2 per cent.

“It means its lifted full-year guidance for pre-tax profits to £1.218 billion from £1.21 billion.

“However, the onset of hostilities put creases in its performance.

“Logistics issues slowed international sales, however an uptick at the end of the quarter indicates these were beginning to be ironed out.

“Nevertheless, it’s had to size up painfully higher freight and energy costs, which totalled £47 million.

“But Next is tailoring its operations to try and absorb the shock, with some price rises planning internationally, and cost-cuts elsewhere to try and keep profits intact.

“Understandably, the company remains cautious given the unpredictability of the conflict and the current consumer caution swirling, and shares dipped slightly in early trade.”

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