Next to hike prices by up to 8% outside Europe due to Iran war costs
Summary
Next, a fashion and home goods retailer, plans to raise prices by up to 8% in some countries outside Europe because of higher costs caused by the war involving the US, Israel, and Iran. The company expects to face an extra £47 million in costs this year due to more expensive fuel and supply problems from the conflict but does not plan major price rises in the UK and Europe.Key Facts
- Next will increase prices by up to 8% outside Europe starting in May.
- Additional costs of £47 million this year come from higher fuel prices and supply chain issues linked to the US-Israel-Iran conflict.
- No significant price increases are planned in the UK; UK sales grew 4.4% early this year.
- Price changes in Europe are not expected because currency gains balance out cost increases.
- Next raised its full-year profit forecast to £1.22 billion after a 6.2% rise in full-price sales in the first quarter.
- The company expects overall full-price sales growth of 5.0% for the year.
- Shares in Next have dropped by 5% so far this year.
- Next plans to use cost savings and better factory prices to avoid bigger price hikes in the UK and Europe.
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