Next has increased its estimated cost hit from the Middle East conflict to £47m, up from the £15m guidance it gave in March. It said that it expects disruption to continue for the rest of its financial year.

Next said that the war was pushing up transport costs across international shipping and UK distribution, while also adding pressure through higher fuel and energy prices.

To offset the impact, Next said it would introduce price increases in some overseas territories from May, with rises of up to eight per cent in selected markets.

However, it added that it does not currently expect to lift UK prices beyond the 0.6 per cent increase already forecast at the start of the year, thanks to operational savings and better-than-expected factory prices.

Next said: “We plan to mitigate the ongoing cost increases caused by the conflict in the Middle East with a combination of moderate price increases in some international territories and operational cost savings.

“Based on our current estimates, we do not anticipate increasing our UK prices over and above the 0.6% we had forecast at the beginning of the year.”

The company cautioned that its position could change if disruption worsens or costs rise further.

The warning came as Next nudged up its full-year profit guidance to £1.22bn, from the £1.21bn previously forecast in March.

The upgrade follows a stronger-than-expected first quarter, with full-price sales rising 6.2 per cent in the three months to 2 May.

UK sales were up 4.4 per cent over the quarter, although growth slowed to 1.7 per cent by the end of the period. Next expects UK growth to ease further to one per cent in the second quarter as it comes up against tougher comparatives from last year.

Despite the increased cost pressure linked to the conflict, Next said it was able to absorb the impact in the UK through cost savings and more favourable factory pricing.

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