Home Business News‘Unseasonably warm weather’ hits Primark sales

‘Unseasonably warm weather’ hits Primark sales

by
26th Feb 18 10:57 am

But group remains on track to hit annual profit targets

The shares of Primark owner, Associated British Foods (AB Foods), were up more than 1 per cent in morning trading despite posting a fall in sales amid โ€œunseasonably warm weatherโ€ in October last year.

For the 24 weeks to March, AB Foods said that Primarkโ€™s same-store sales would show a decline of 1 per cent on the same period a year before.

Nonetheless, the group said that like-for-like sales for the 16 weeks to 3 March are expected to show growth of 1 per cent, with the wider group remaining on track to hit annual profit targets.

AB Foods said: โ€œPrimark is performing very well in the UK with sales 8% ahead of last year and a strong increase in our share of the total clothing market.

โ€œThis was driven by a 4% growth in like-for-like sales, an increase in selling space and the breadth of our consumer offering. Our business in the US continues to make progress.

โ€œWe expect an acceleration in Primark profit growth in the second half as a result of an improvement in margin over the same period last year.

โ€œThis will be driven by better buying and some benefit of the recent weakness of the US dollar on purchases which will more than offset an expected return to a more normal level of markdowns, compared to the very low level achieved last year.โ€

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