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Primark cuts sales outlook after UK crisis


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Primark, the international fashion retailer, has blamed wary shoppers in its core UK market as it slashes sales by 2025.

Associated British FoodsThe parent of Primark, said in a trading presentation on Thursday that it was targeting “low” single-digit sales growth for the fashion chain in 2025. This is down from guidance for mid-range growth. one issued in November.

“Business performance within our customer segments was weak due to cautious consumer sentiment and a lack of seasonal purchases due to mild fall weather,” the company said. said.

ABF, which also owns Ovaltine and Twinings brands, said Primark delivered “good growth” in continental Europe and the US.

Overall, Primark’s total sales rose almost 2 per cent to $3.3bn in the 16 weeks to January 4, helped by new store openings. But like-for-like sales, a metric that strips out the effect of store openings and closings, fell 1.9 percent over the same period.

The company said customers did not buy as many clothes in October and November, but sales have picked up during the key Christmas trading period.

Like-for-like sales for the fashion chain in the UK and Ireland – which account for almost half of the total – fell sharply, down 6 per cent in 16 weeks. Primark’s share of the UK fashion market fell to 6 per cent 6.8.

Shares in ABF were down 0.4 percent in early trade.

ABF expected Primark’s adjusted operating profit in 2025 to remain in line with last year’s level.

It did not change its outlook for the group’s other sectors, which include food, ingredients, sugar and agriculture.



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