Primark enjoys strong sales growth
Primark has said it expects its half year sales to be 16% ahead of the same period in the previous year at constant currency.
The increase has been driven by an 11% rise in retail selling space and very high sales densities in stores opened during the last year.
However, total sales will be up around 12% at actual rates due to the strength of sterling.
In a pre-close trading update, Primark owner Associated British Foods said sales at the fashion chain had been strong in the last three months and that cumulative like-for-like sales had improved since its January trading update and are now level with last year.
ABF added: “Total like-for-like sales growth for the group was held back by the unseasonably warm weather in the autumn across northern Europe and the impact, on existing stores, of new store openings in the Netherlands and Germany. However, total sales in northern continental Europe were well ahead of last year.”
Operating profit margin in the period has been in line with expectations, although lower than last year as a result of a higher level of mark-down.
Primark has increased its retail selling space by 0.5 million square feet since the financial year end and, at 28 February, 287 stores will be trading from 10.7 million square feet of retail selling space.
The retailer opened ten new stores in the period including the relocation of its Northampton store to much larger premises. It also opened four stores in the Netherlands and three stores in Germany.
