Next had initially anticipated additional costs of \u00a315m due to the war, but that only covered the first three months after the US and Israel first launched attacks on Iran.<\/p>\n
Next increased its full-year profit forecast to \u00a31.22bn, from \u00a31.21bn, after full-price sales increased over its first quarter by 6.2%.<\/p>\n
UK sales rose 4.4%, which was better than expected.<\/p>\n
It expects to offset all of the extra \u00a347m through measures including price increases and savings. <\/p>\n
The company said that increased costs in the UK will be offset by “cost savings and margin gains” through better factory-gate prices. <\/p>\n
It is not expecting to raise UK prices by more than the 0.6% it forecast at the beginning of the year.<\/p>\n
It said the conflict caused “considerable disruption to service in the region” but trade began to recover towards the end of the quarter.<\/p>\n
Regarding its international sales, it said they had fallen when the conflict began, adding: “Over the last few weeks we have seen significant recovery, albeit growth was not as strong as in the first five weeks of the year.”<\/p>\n
In Europe, “cost increases have been offset by currency gains, so there is no need for price increases”.<\/p>\n
“Price increases outside Europe will vary by country, but will be no more than +8% in any territory,” it added. <\/p>\n
Next has 700 stores worldwide, around 500 of which are in the UK. It also owns brands such as FatFace and Cath Kidston, and has stakes in Gap, Victoria’s Secret and Reiss.<\/p>\n
The group forecast full price sales growth of 5.0% for the full year.<\/p>\n
Shares in Next are down 5% so far this year.<\/p>\n
European clothes chains including H&M have warned that a prolonged Middle East conflict will push up prices and dent consumer demand.<\/p>\n
The chief executive of the jewellery company Pandora told the BBC consumer confidence “is not that high today”.<\/p>\n
Speaking on Radio 4’s Today Programme, Berta de Pablos-Barbier said consumers have less disposable income because of high inflation and interest rates.<\/p>\n