Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Primark to post "exceptionally strong" growth

Sales at value retailer Primark were “exceptionally strong” in its first half, with operating profit set to be boosted after strong like-for-like growth.

Primark’s parent company Associated British Foods (ABF) said sales in the 24 weeks to March 2 are now expected to be 25% ahead of last year at a constant currency, with like-for-like sales growing by 7%.

Sales were boosted by weak comparisons in an unseasonably warm autumn 2011 coupled with strong trading over the Christmas period.

ABF said operating profit margin was much higher than the same period last year helped by lower cotton prices and better trading. ABF added Primark’s margins would not benefit from lower cotton prices in the second half, although did not give a reason why.

During the period, Primark expanded its retail selling space by 700,000 sq ft through opening 15 new stores including its second on London’s Oxford Street. In total it will be trading from 257 stores and 8.9 million sq ft of selling space by March 2.

ABF said the pace of store openings would not continue for the remainder of this financial year but will pick up again in the next financial year. It expects to add a further 100,000 sq ft of space this year, mainly comprising the completion of the extensions of its Newcastle and Manchester stores.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.