Primark has recorded an uplift in full-year sales across the UK, Europe and the US as the fashion retailer’s expansion drive offset like-for-like declines.
The fashion giant said it expects sales in the 52 weeks to September 14 to be up 4% year on year on a constant currency basis despite a 2% fall in like-for-like sales. Primark said its full-year operating profit outlook remains unchanged, and its margin will be up year on year despite the impact of the strong dollar in the second half of its financial year.
The retailer said it “continued to gain significant market share” in the UK, where sales rose 3% overall and like-for-likes dipped 1%. Primark said it was “encouraged” by customer response to its new Birmingham superstore, which stocks the retailer’s full fashion range as well as new food, beverage and beauty services.
Primark’s sales across Europe are expected to be up 5% year on year overall, bolstered by strong growth in France, Spain, Italy and Belgium. On a like-for-like basis sales declined 3%, primarily due to a weak performance in Germany, where the retailer said it had “strengthened management and initiated focused marketing”.
The fashion retailer said its US sales were up on a total and like-for-like basis, with its tenth store in the country set to open this autumn in New Jersey.
Primark opened 14 new stores during the period, four of which were in the UK, and is set to open in its 13th market, Poland, next year.
The retailer’s parent company Associated British Foods said its full-year outlook remained unchanged, with strong profits across Primark and its grocery division offsetting declines in sugar.
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