Primark sales rise 13% but profits fall
Budget clothing retailer Primark saw sales rise by 13% to £3.04 billion in the year to 17 September. However adjusted operating profit fell 8% to £309 million due to the decision to asorb some margin pressure caused by high cotton prices and the rise in VAT.
Parent company Associated British Foods said in a trading statement issued today that the retailer had opened 19 new stores during the year including 11 in the UK, three in Spain, two in Portugal and Germany and one in the Netherlands. This took the total number of Primark stores at the year end to 223.
Since the year end new stores have opened in Portugal, Malaga and Hanover.
The retailer also introduced improvements to store design with improved layout, enhanced merchandising, more fashionable shop windows and customer-friendly navigational signage. This was showcased at the recent openings of stores in Dortmund, Germany and Stratford City in London in September.
Chief executive George Weston said in the ABF trading statement: "Opportunities for further investment are exciting, particularly in Primark, and the strength of the group balance sheet and a strong cash flow will enable us to pursue them with confidence.”
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