Primark expects 13% rise in full year sales
Associated British Foods has reported that full year sales at its Primark chain are expected to be 13% ahead of last year at constant currency with trade mainly driven by a 9% increase in selling space.
In a pre-close trading update, the company said sales on a like-for-like basis are expected to be 1% ahead of last year reflecting a strong performance across a number of countries.
The company reported that very high sales densities were achieved by stores opened in the last 18 months particularly by stores in France, which has been Primark’s most successful new market entry to date. As a result of the weakening of the euro against sterling, sales are expected to be 8% ahead at actual exchange rates.
ABF said like-for-like sales in the early part of the financial year were impacted by the unseasonably warm autumn followed by strong trading across the important Christmas period. In addition, spring trading was held back by cool weather followed by strong trading in the fourth quarter.
Spain, Portugal and Ireland all performed “very well” throughout the year and the UK delivered a positive like-for-like performance.
During the current financial year, Primark has opened almost one million square feet of selling space bringing the total estate to 293 stores. The new stores include the retailer’s first shop in the US at Downtown Crossing in Boston which will open on 10 September.
Primark’s pipeline of new stores includes some 1.5 million square feet scheduled for the new financial year, the major elements of which will be in the northeast US, the UK and Spain.
ABF will announce its results for the 52 weeks to 12 September 2015 on 3 November.
