Next said the conflict in the Middle East will add £15 million (€17.3 million) of costs, taking the shine off another upward nudge to the UK retailer’s profit guidance.

The fashion and homeware company now expects £1.21 billion of pretax profit this year, according to a statement Thursday, slightly higher than its January forecast of £1.2 billion. The added costs related to the Iran war have been offset by savings elsewhere, Next said, though it warned it would raise prices if the conflict extends longer than three months.

Led by chief executive Simon Wolfson, Next has a habit of setting forecasts it subsequently raises, doing so five times for its last fiscal year.

Shares of Next soared 44 per cent in 2025, as its network of 500 stores bucked a largely moribund UK retail sector hit by higher taxes and inflation. The stock is down 12 per cent so far this year. - Bloomberg L.P.