Primark sales increase in run-up to Christmas
Primark has posted a 7.9% increase in sales to £3.3 billion at constant currency in the 16 weeks to 6 January which included strong Christmas trading.
On a like-for-like basis, sales rose by 2.1% driven by higher average selling prices.
Primark owner Associated British Foods said sales in Primark’s womenswear and menswear were particularly strong, especially in the performance wear, leisure and tailored clothing categories. Its Christmas ranges and Rita Ora collection also performed well.
Due to unseasonably warm weather, sales in cold weather categories were slower at the start of the period but improved when the recent cold temperatures kicked in.
In the UK, total sales were up 4.5% and by 3.8% on a like-for-like basis. Meanwhile, total sales in Europe rose by 8.1% with a like-for-like sales uplift of 1.3%.
ABF said Primark ended the period with good levels of stock, although it is continuing to monitor the situation in the Red Sea. It currently does not expect any significant disruption to its supply chain.
It added: “We feel more confident in the delivery of the Primark adjusted operating margin in this financial year, driven by a further improvement in product gross margin. This should insulate us well against potential additional costs of supply due to the disruption in the Red Sea should they arise.”
Primark opened eight new stores in the period across France, the US, Spain and Poland.