Primark has bucked the UK High Street trend and reported sales up six per cent during the 40 weeks to June 23, up seven per cent on last year at actual exchange rates.
The value fashion retailer’s parent company Associated British Foods said this growth was “marginally lower” than the performance delivered in the first half, although like-for-like sales over the quarter improved on those for the first half.
Performance was driven by better trading across the eurozone, including strong results from its first four stores in Italy. Of the seven new stores opened worldwide in the year to date, two were in the UK, where growth in like-for-like sales was delivered.
“We expect to add a further 0.1 million square foot of selling space by the end of this financial year, with a new store in Brooklyn, our ninth store in the US, and a relocation to a larger store at Islazul Madrid,” the results revealed. “The opening of new stores at Toulouse in France and Ingolstadt in Germany have been delayed and are now expected early in the next financial year.”
Primark’s operating margin in the first half was 9.8 per cent, compared to 10 per cent in the same period last year, but the outlook for the rest of this fiscal year remained positive.
“We expect margin in the second half to be well ahead of the first half and last year with the continued benefit of better buying and also the beneficial effect of the weakening of the US dollar exchange rate on purchases,” read a statement.
“Stock has been tightly managed and markdowns, although higher than the very low level achieved last year, will be better than previously expected and as a result, the profit from Primark will now be higher than expected.”
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