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New stores boost Primark's full-year sales by 9%

Primark’s sales grew 9% at constant currency to £5.9bn for the year to 17 September while adjusted operating profit increased 1% to £689m.

Primark

Primark

Like-for-like sales were down 2% overall, with the UK in line with this but Ireland experiencing strong sales.

Unseasonable weather and cautious consumer sentiment led to value declines in the clothing retail sector in some of the important markets, particularly the UK and Germany, the company said. It also cited the warm weather in the pre-Christmas period followed by a very cold March and April as part of the reason for the like-for-like sales decline.

The value retailer expanded its selling space by 1.2m sq ft in the financial year and has planned a further 1.3m sq ft for the coming year.

The company has been rolling out its new concept, first trialled in Leeds at Trinity shopping centre in 2013, with 59 new stores opened in this style and 34 upgraded.

Associated British Foods chief executive George Weston said Primark now has a better understanding of what appeals to its American customers and is gaining valuable insights into store location.

“This was a challenging year for clothing retailers with market value declines seen in most countries in Europe. It is therefore a testament to the strength of Primark’s customer offering that it increased its share in all of its major markets,” he said.

“The devaluation of the euro against the US dollar in 2015 put pressure on margins in this financial year and sterling’s recent devaluation against the US dollar will have an impact in the coming year,” he added. “Primark’s commitment to maintaining its leadership position in the value sector of the clothing market has been our priority and I am pleased with the efforts of our buyers to significantly limit the profit impact of euro weakness in the financial year.”

 

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