Fashion and homewares group Next has warned that it is likely to raise prices of its clothes by up to 8% early next year due to “speculative bubble” in cotton prices.
This is expected to continue till the prices of cotton remain high.
The company informed, “As a result of further rises in the price of cotton, retail price rises are likely to be at the top end of our previously stated 5% to 8% range for the first quarter of next year.”
“The longevity of what appears to be a speculative bubble in cotton prices will be critical in determining prices for the second quarter,” it added further.
The company’s sales figures for the third quarter to October 30 show that like-for-like sales for Next Retail have fallen by 3.3%. This is even worse than its 1.5% fall during the first half.
However, the overall sales at the group have increased by 2.2%. There has also been 7.9% rise in sales in its online arm, Next Directory. The company is still expecting to meet its annual profits estimate of £535 million to £560 million.
