No Christmas cheer expected for Primark parent company

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Primark forecast

The parent company of Primark is forecast to post a dip in sales during its first quarter this week, but analysts say the value fashion retailer has been doing well on its own.

Association British Foods (ABF) will release its quarterly update on Thursday, which will also reveal how the company fared over the crucial Christmas trading period.

According to City AM, analysts at Credit Suisse predict ABF would post a one per cent dip in like-for-like sales, but sales in its UK market would be positive.

The firm also said Primark alone would enjoy a nine per cent boost in sales on a constant currencies basis, boosted by the opening of five new stores and President Donald Trump’s tax cuts in the US.

ABF’s full-year figures in November indicated a sales rise of 15 per cent to £15.4 billion, with operating profit up by 22 per cent to £1.36 billion.

Meanwhile, Primark sales came in at £7.05 billion, a 19 per cent year-on-year increase.

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