Primark revenues up 22% in third quarter
Primark grew its revenues by 22% at constant exchange rates in its third quarter as trade benefited from warm weather and new store openings.
The increase meant the fashion retailer’s sales improved by 17% in the first 40 weeks of its financial year.
In a statement, owner Associated British Foods said revenue growth in the 16 weeks to 21 June was driven by a further increase in retail selling space and superior sales densities in new stores. Primark also achieved good like-for-like sales growth as trade was boosted by warmer weather than in the same period last year.
The retailer increased its selling space to 10 million square feet from 9 million square feet in the same period last year. As of 21 June, Primark was operating from 275 stores after opening nine new stores since the half year including relocations in Cardiff and Plenilunio in Spain.
Never Miss a Retail Update!ABF said Primark had “a very strong” pipeline of new stores in Europe extending over a number of years and now expects a net increase in retail selling space in this financial year of 1.2 million square feet. The retailer added that plans for the first store openings in the north east of the USA towards the end of 2015 remain on track.
Across the wider ABF group, revenues were impacted by lower sugar prices and a stronger pound which meant that group revenue from continuing operations in the 16-week period was 3% below the same period last year but 3% ahead at constant exchange rates.
Looking ahead ABF said: “Full year adjusted earnings per share are now expected to be ahead of last year, with better profit progress in retail, grocery and ingredients offsetting the adverse effects of lower sugar prices and the strengthening of sterling.”
