Tuesday, August 9, 2022

Primark sales up despite rainfall

Fast fashion retailer Primark has seen sales rise 16 per cent, according to figures released today.

In the 40 weeks to June 23rd 2012, the value retailer noted a like-for-like sales growth which helped boost overall sales while an increase in retail selling space also drove growth.

Parent company Associated British Foods (ABF) pointed out in its third quarter trading statement that four new Spanish stores were opened in the quarter, taking the total number of stores to 237.

From a UK perspective, bad weather in April led to poor sales and the retailer emphasised the effect of such a changeable market.

“Since the half year, the monthly sales pattern has seen more variability than usual as a result of unseasonal weather,” a statement from ABF said.

“Trading in the UK and Ireland during the quarter was good with the exception of April when cold and wet weather led to weak sales.”

Earlier this week, the British Retail Consortium reported disappointing retail sales for last month, as wet weather over the Jubilee weekend “heralded the start of the wettest June on record”, highlighting the fragility of the high street during unseasonable weather changes.

Despite this, the group remains positive in its outlook for the coming months, pointing out that capital expenditure at the fashion retailer remains in line with last year.

“As anticipated, operating margins are improving in the second half reflecting lower input costs,” the statement said.

“The group remains on track to deliver substantial growth in both adjusted operating profit and adjusted earnings per share for the full year.”


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