Fashion retailer Primark recorded an improved performance and market share gains, as owner Associated British Foods (ABF) reported a challenging environment for the months ahead.

In a trading update covering the 16 weeks to 3 January 2026, ABF said Primark’s UK business showed “encouraging” progress, with sales growth of around 3% and like-for-like growth of approximately 1.7% in what it described as a difficult clothing market, particularly over the Christmas period.

The retailer gained market share in the UK, driven by targeted actions to strengthen its customer proposition.

ABF chief executive George Weston said: “Primark has had a challenging start to the financial year, with a mixed performance. In the UK, focused actions and investments to strengthen our customer proposition have driven improved trading and market share gains, while trading has remained weak in continental Europe.

“In a challenging consumer environment, our focus is on factors within our control, including initiatives now underway in Europe aimed at improving performance. We are also making good progress to deliver Primark’s medium and longer-term growth opportunities.”

In continental Europe – which accounts for an estimated 49% of Primark’s total sales – the business reported a like-for-like sales decline of around 5.7%. ABF said similar initiatives to those in the UK are only recently underway across Europe and continue to be hindered by low consumer confidence.

Across the group, Primark’s overall like-for-like sales fell an estimated 2.7% during the period, while total sales rose around 1%, supported in part by store openings. The retailer’s ongoing rollout programme contributed approximately 4% to sales growth, including the opening of its first store in Kuwait through a franchise arrangement. In the US, which represents around 6% of Primark sales, total sales growth was estimated at 12%, although ABF noted that volatile trading conditions weighed on consumer sentiment and footfall.

ABF said Primark’s sales growth in the period was below previous expectations and it now anticipates low single-digit sales growth in the first half of 2026.

If current sales trends persist into the second half, ABF expects Primark’s full-year adjusted operating profit margin to be around 10%, in line with the first half, as it continues to invest in growth.

Weston added: “Our food businesses experienced mixed trading in the period, particularly in the US where consumer demand in certain categories has continued to weaken. While we expect the tough trading conditions to continue in the short term, we remain confident in the overall prospects for the Group.”

Looking ahead, ABFsaid it has a broad range of initiatives in place, particularly in Europe, aimed at improving Primark’s sales and profitability.

At a group level, ABF – which owns a range of food brands, such as Abbott’s Bakery, Jordans and Silver Spoon – now expects adjusted operating profit and adjusted earnings per share to be below last year, reflecting weaker performance across several segments.

ABF will publish final revenue figures by business segment for the 16 weeks to 3 January 2026 on 22 January 2026.

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