Published by Global Banking & Finance Review®
Posted on March 26, 2026
2 min readLast updated: March 26, 2026
Add as preferred source on GoogleNext plc posted a 14.5 % rise in annual pre‑tax profits for the year ended January 31 2026, raised profit guidance for fiscal 2026/27, and signalled a slowdown in sales growth, acknowledging strong early trading but risks ahead. (≈289 chars)
By James Davey
LONDON, March 26 (Reuters) - British clothing retailer Next warned the U.S.-Israeli war on Iran would likely impact costs, selling prices and consumer demand, and it could restrain its growth in the Middle East.
Next said on Thursday it had accounted for 15 million pounds ($20 million) of additional costs likely to arise from the conflict, such as fuel and air freight, on the assumption that the disruption lasts for three months.
The Middle East accounts for about 6% of its turnover.
It said these costs have been offset by savings elsewhere, so do not affect its guidance for its new financial year.
"Beyond the next three months, if we see these costs persist, then we will begin to pass costs through as higher pricing – but for today that remains a contingency not a plan," Next said.
Shares in Next are up 26% year-on-year but have fallen 8% over the last month on fears the Iran war will raise the group's costs and dent consumer demand for discretionary items.
For the year to January 31, Next reported a slightly better-than-expected 14.5% rise in pretax profit to 1.158 billion pounds, on full price sales up 10.9%.
It edged up its guidance for 2026/27 profit to 1.210 billion pounds, but kept its forecast for full price sales growth to slow to 4.5%.
It said sales in the first eight weeks of the year were encouraging in the UK and were also strong overseas up to the point the Middle East conflict began.
British retail sales tumbled this month by the most since April 2020, a survey by the Confederation of British Industry showed on Tuesday. A survey from the British Retail Consortium, published on Thursday, showed UK consumer confidence collapsed in March.
($1 = 0.7482 pounds)
(Reporting by James Davey, Editing by Paul Sandle)
Next reported a 14.5% rise in annual profit.
Next maintained its 2026 sales guidance, expecting growth to slow.
Sales were reported as encouraging in the UK and strong overseas before the Middle East conflict.
Next has slightly raised its guidance for profit in its new financial year.
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