Primark cuts sales forecast on weak UK performance

(Sharecast News) - Clothing retailer Primark cut its sale growth target to low-single digits in fiscal 2025 after warmer autumn weather and cautious consumers dented UK revenues in the 16 weeks to January 4. In the UK, sales declined 4% during the period, with like-for-like sales down 6.4%. The company, owned by Associated British Foods, in November guided for annual growth in the mid-single digits.

Adjusted operating profit margin was forecast to remain broadly in line with last year's level, as gross margins continued to improve and good cost management offset inflation and the step-up in investment.

The performance reflected a weak October and November followed by stronger sales and like-for-like growth in December over the key Christmas trading weeks, AB Foods said in a trading statement on Thursday.

"Trading activity within elements of our shopper base was weak as a result of cautious consumer sentiment and a lack of seasonal purchasing catalyst given the mild autumn weather," it added. Primark generates about 45% of its sales in the UK and Ireland.

"Despite the market conditions in the UK and Ireland, we remain confident in the Primark proposition and continue to focus on initiatives across product, digital and brand to drive underlying growth."

Reporting by Frank Prenesti for Sharecast.com