Primark owner boosts profit forecasts after “strong” trading

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Discount fashion retailer Primark has boosted its full-year outlook following a “particularly strong” trading period in the lead up to Easter.

Associated British Foods (ABF), which owns Primark alongside brands like Silver Spoon and Twinings Tea, expects full year sales to rise 13 per cent on a constant currency basis, with UK turnover jumping 10 per cent.

Like-for-likes were also forecast to come in one per cent higher at Primark.

This boost is reportedly thanks to strong trading over Easter, driving sales and reducing discounting.

“After a good first half, third-quarter trading was particularly strong in the lead-up to Easter, benefiting from comparison with prior year results that were affected by poor weather and an earlier Easter holiday,” ABF said in a trading update.

“Favourable weather in the fourth quarter and the strength of our consumer offering resulted in markdowns at lower levels than normal.”

Elsewhere, the company expects to see a windfall of £85 million thanks to overseas trading and the drop in the sterling‘s value, but has warned that poor performance against the dollar has lead to higher import costs for Primark.

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