The parent company of Primark remains “optimistic for the group’s continued growth” after posting is trading update for the 40 weeks to June 18.
Sales at Associated British Foods’ (ABF) value fashion retail chain rose by seven per cent in this period, boosted by increased retail selling space after opening 11 new stores.
Sales for the quarter at actual currency also rose by seven per cent as the company reportedly benefited from the falling value of the pound after Brexit.
However, like-for-likes in the last 16 weeks were affected by a decline in footfall from wet and cold weather, especially in April.
ABF said while the pound was weaker in its third quarter against compared with the results this time last year, and warned Primark’s UK profit margins could suffer, it still expects overseas profits in the final quarter will exceed expectations once converted into sterling.
“Following the result of the EU referendum, sterling has weakened further and at these rates we expect a bigger translation benefit in the final quarter with no material transactional effect,” it said.
ABF’s plans to continue expanding Primark remain unchanged in the wake of the EU referendum results.
An additional 300,000 sq ft of trading space for Primark will open in August, including two stores in the US and doubling the size of its Creteil store in Paris.