Primark posts surge in sales and profit
Primark has seen an improvement in full year revenue and profit following substantial sales growth in the UK, US and Europe.
In the year to 16 September, revenue came in better than expected with an increase of 17% to £9 billion as operating profits rose by 30% to £717 million.
Primark owner Associated British Foods attributed the revenue uplift to several factors, including price increases to offset cost inflation and well-received product ranges. The retailer also benefited from strong footfall, good performances in new stores, and the rollout of an improved customer website.
However, trading was impacted by the weather in Primark’s second half when there were cooler temperatures in the UK and Ireland and heatwaves in Southern Europe. Sales were also affected by warm conditions in August and September which coincided with the launch of the retailer’s autumn/winter ranges.
Sales in the UK rose by 11% in the year driven by like-for-like growth of 10% after trading was boosted by the launch of Primark’s improved website. In April , the retailer announced the expansion of its click and collect trial to an additional 32 stores in London, to take the total to one third of its store estate.
Meanwhile, sales in Europe and the US increased by 18% and 24% respectively.
George Weston, chief executive of Associated British Foods said: “We continue to believe that Primark’s offer is very attractive not just to existing customers but also to new customers engaged by our digital platform, new store openings, and word of mouth which remains as powerful as ever. With Primark margin now moving back to its historic levels, we view the future for this business with confidence.”
