Primark trading ‘challenging’ in November
Primark owner Associated British Foods has said that its profit expectations remain unchanged despite challenging trading at the fashion chain in November.
In a statement ahead of its AGM today, the company said its chairman Michael McLintock will say: “At this early stage in our new financial year, sales and profit for the first eight weeks of trading for the group were in line with expectations. However, during November Primark trading was challenging, in a tough retail market, but with careful inventory management and improved margins, our expectation for the increase in Primark profit is unchanged.”
ABF said Primark’s selling space expansion will continue and that it expects an increase in retail profit for the year.
Speaking about its grocery business, ABF said it anticipates seeing an improvement in profit from a margin increase in its Australian and UK businesses and a full year contribution from Acetum. However, profit from its sugar business will be“significantly lower” following the full year effect of EU sugar prices.
It also highlighted the potential effect of a volatile sterling during Brexit negotiations.
ABF added: “Taking all of these factors into account, at this early stage, we still expect adjusted earnings per share for the group for this financial year to be in line with the 2018 financial year.”
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