Fashion giant Primark has maintained its full-year guidance despite the unseasonable British summer taking its toll during the second half.
Primark parent company Associated British Foods said today that Primark’s revenue growth for the second year to September 14, 2024, is expected to be at around 4%, with like-for-like sales set to dip by around 0.5%.
In the third quarter, Primark predicts sales will grow by 0.2% and then decline by around 0.9% in the fourth quarter.
The fashion giant said its revenue growth nods to “unfavourable weather” across the UK and Ireland, which took its toll on footfall to stores and hit sales of spring/summer collections across womenswear and footwear.
Market share at the fashion retailer also decreased slightly to 6.5% during the 24 weeks to July 21, 2024, as a result of the “lower high street footfall”.
Despite this, Primark said its average selling price increased during the period and that it is continuing to reap the benefits of its licensing products, including Disney, and collaborations such as its Rita Ora and Colleen Atwood collections.
The fashion giant said its markdown and promotional activity during the period was “managed effectively” and it expects to finish the year with “good inventory levels”.
Primark hailed the success of its ongoing store expansion in the UK during the period, having opened two new stores, extended two and re-located two more.
Sales in Europe and the US are expected to increase by 5% and 25% respectively during the second half as markets including Spain, France and Italy in Europe continue to deliver “strong growth”.
In terms of outlook, Primark said its guidance for adjusted operating profit remains unchanged and the group expects the fashion retailer to deliver “good sales growth” for the 2025 full year.
Associated British Foods chief executive George Weston said: “The group has continued to perform well in the second half, delivering good topline growth, a significant improvement in profitability and excellent cash generation.
”While the British weather was not in Primark’s favour this summer, robust growth in other markets and new store openings have driven good sales overall.”
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