Primark’s parent company Associated British Foods has announced that revenue at the value retailer grew by 12% on a comparable basis in the 24 weeks to 4 March 2017.
Sales were up 11% on last year at a constant currency, helped by a strong performance in the UK and an increase in selling space. Operating margin declined slightly as forecast, due to the weakness of the sterling against the dollar and Primark’s commitment to keeping prices low.
Chief executive of ABF George Weston said the impact of the strong pound would continued to be felt throughout the second half of the year due to less “advantageous” currency exchange rates but added that Primark’s buying and merchandising teams had been working to reduce the effect on margins.
Primark has increased retail selling space by 0.8m sq ft since the end of the last financial year, including five new stores in the UK and the expansion of its Oxford Street flagship.