Next, H&M Warn of Consumer Impact If Middle East War Lasts

Next Plc and Swedish fast-fashion retailer Hennes & Mauritz AB joined a growing chorus of corporate warnings about a prolonged conflict in the Middle East, as firms brace for higher prices holding back consumer spending.

Higher freight and energy charges will add £15 million ($20 million) of costs in the short-term, Next said Thursday, adding it could lift prices of some clothes 4% to 10% by September if the Iran war starts to hit manufacturing costs. H&M said a sustained conflict would raise energy prices, hurting squeezed shoppers.