Impressive first-half trading figures from Primark will pave the way for further European expansion, City analysts believe.
The value retailer, which has 196 stores in the UK and Europe, said total sales rose 19% to £1.26bn in the 24 weeks to February 27, a like-for-like rise of 8%. Profits rose 18% to £144m. Margins were flat at 11.4%.
The retailer will open a 200,000 sq ft warehouse in Spain in the summer and a freehold warehouse in the Republic of Ireland.
Panmure Gordon analyst Graham Jones said Primark’s performance was “impressive” and its international success provided potential for “substantial” growth in Europe.
He said: “We do not believe Primark’s margins are, or will be, materially diluted by expansion in Continental Europe, and we do not expect the warehouse moves to have any material impact on Primark’s cost base.”