Associated British Foods who owns Primark have seen their sales plummet and have issued a profit warning as the retailer had a difficult Christmas trading.
Shares in the company fell by 12% in early trading on Thursday and in the 16 weeks to 3 January like-for-like sales fell 5.7% across Europe.
AB Foods said, “Overall, Primark’s sales growth in the period was below our previous expectations and we now expect Primark’s sales growth in the first half of 2026 to be in the low single digits.
“In a difficult trading environment, we significantly increased markdowns to manage inventory levels effectively, which impacted profitability.”
George Weston, chief executive of AB Foods, said, “Primark has had a challenging start to the financial year, with a mixed performance.
“In the UK, focused actions and investments to strengthen our customer proposition have driven improved trading and market share gains, while trading has remained weak in continental Europe.
“In a challenging consumer environment, our focus is on factors within our control, including initiatives now under way in Europe aimed at improving performance.”
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