THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
Department Stores
Electricals
Entertainment
Fashion
Food & Drink
General Merchandise
Health & Beauty
Home & DIY
Interviews
Newsletter
Property
Shopping Centres & Retail Parks
Sports & Leisure
RETAIL INSIGHTS
RETAIL SOLUTIONS
• Omnichannel Futures Conference 2020
• Online Conversion Summit 2020
• Future of Retail Marketing 2020
• The HR Summit 2020
• AI in Retail Conference 2020
ABOUT
CONTACT
SUBSCRIBE FOR FREE
Primark posts uplift in profit

Primark owner Associated British Foods has said that adjusted operating rose by 6% to £341 million at the budget fashion chain in the first half of… View Article

FASHION

Primark posts uplift in profit

Primark owner Associated British Foods has said that adjusted operating rose by 6% to £341 million at the budget fashion chain in the first half of its financial year.

Sales grew by 8% year-on-year to £3.477 billion in the 24 weeks to 3 March as trade was driven by increased retail selling space. 

Meanwhile, like-for-like sales declined by 1.5% in the period after being held back by unseasonably warm weather in October. The company said the last week of the period was also challenging for Primark due to freezing temperatures across northern Europe. However, like-for-like sales recovered to growth of 1% in the 15 weeks to 24 February after record Christmas sales.

ABF said Primark performed well in the UK with sales climbing by 8% on the same period in the previous year driven by a 3% uplift in like-for-like sales and an increase in selling space. It also made progress with its US business as it continues to refine the operating model of stores in the north east of the country.

Retail selling space has increased by 0.4 million square feet since the previous financial year end and, at 3 March 2018, 352 stores were trading from 14.3 million square feet of space. Seven new stores were opened in the period in the UK, Germany, France and Portugal. In addition, there were three relocations in the UK including a return to the redeveloped Westgate shopping centre in Oxford and a move to larger stores in Rotherham and Grimsby.

Looking ahead ABF said: “We expect an acceleration in Primark profit growth in the second half as a result of an improvement in margin over the same period last year. This will be driven by better buying and some benefit of the recent weakness of the US dollar which will more than offset an expected return to a more normal level of markdowns, compared to the very low level achieved last year.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Online Conversion Summit 2020
Online Conversion Summit 2020
April 30 2020
The Hallam Conference Centre, London W1W 6JJ
The Retail Bulletin Online Conversion Summit 2020 Partnered by IMRG
Future of Retail Marketing 2020
Future of Retail Marketing 2020
9 June 2020
Hallam Conference Centre, 44 Hallam St, London W1W 6JJ
The Future of Retail Marketing for Customer Engagement
The HR Summit 2020
The HR Summit 2020
1 October 2020
Hallam Conference Centre, London W1W 6JJ
Company values, collaboration with employees and driving a major HR transformation to create a truly omnichannel experience, need to be at the heart of the organisation's culture and brand
AI in Retail Conference 2020
AI in Retail Conference 2020
14 October 2020
Hallam Conference Center, 44 Hallam Street, London W1W 6JJ
CONFERENCE AIMED AT RETAILERS WORKING IN MARKETING, IT, DIGITAL, DATA AND TECHNOLOGY