Primark results expected to be “significantly better” than last year

Primark shoppers in line - results
Shoppers in line at Primark in Birmingham last year. (Image: Jacob King/PA Wires)
// Owner AB Foods has revealed that Primark trading is currently ‘ahead of expectations’
// Sales are expected to continue rising, depsite Covid restrictions and supply chain issues

Primark owner Associated British Foods has revealed that trading for the year to date is currently “ahead of expectations”, adding that final results are expected to be “significantly better” than last year.

The retailer has seen an improvement in like-for-like sales compared to the final quarter of 2020, but warned of increasing Covid cases hitting stores in Europe.

The company also stated that – despite Covid restrictions and supply chain issues – it expects annual sales to be “significantly better” than last year, when a series of lockdowns saw high street stores shut their doors for five months.

AB Foods also said it had managed to use its position as a major customer for its suppliers to overcome some of the squeezes on global supply chains, so has most of the products it needs for Christmas.

READ MORE: Primark eyes new store openings as profits reach £415m

“We are managing disruption in our supply chain by prioritising products most in demand with the support of our logistics providers for whom we are a very important customer,” commented AB Foods, ahead of its annual shareholder meeting.

“We have stock cover on the vast majority of lines for the important Christmas trading period. The incidence of Covid-19 cases is increasing and the public health measures taken to date in our markets are mainly restrictions in trading hours in the Netherlands, the requirement for vaccine passes in Germany and the closure of our five stores in Austria.”

It continued “We have seen an escalation in the cost of energy, logistics and commodities and we have been implementing plans to offset these through operational cost savings and, where necessary, the implementation of price increases.”

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