Easy increase in sales in the first half of the year slowed down by the British market

Primark’s turnover was affected in the second quarter by the careful consumption mood in Great Britain. In other regions, however, the parent company of the clothing discounter, but Associated British Foods, reported a “good underlying growth”.

In total, the turnover of Primark fell by one percent to £ 4.5 billion (5.3 billion euros) in the 24 weeks to March 1, adjusted to currency by 1 percent. New branch openings contributed four percent to total sales growth; These in turn affected the area -adjusted sales, which dropped by 2.5 percent.

New shops drive sales

Central and Eastern Europe recorded the largest sales growth with 21 percent, since the company continued the expansion with new branches in the region. This was also the case in the United States, where sales growth of 17 percent was reported. In Spain and Portugal, sales rose by eight percent, but was affected by flooding in the Valencia region, which led to branch closings. In France and Italy, sales increased by four percent.

In Northern Europe, strong growth in Germany and the Netherlands contributed to an increase of 2.4 percent. This reflects a restructuring strategy within the Primark retail network, which, according to the company, has improved the sales density and profitability.

Branch expansion in the USA and Europe is boosting growth

In contrast, there is a decrease in sales of four percent in Great Britain and Ireland, where “a cautious consumption mood and a lack of seasonal purchases in the autumn months prevailed due to the mild weather”. Primark also indicated that the market share in the two regions in the first half of the year fell from 6.9 percent to 6.7 percent, which is due to a weak purchasing activity within “certain”.

The resolved operating result of the retailer increased by eight percent to £ 540 million, while the operational margin rose to 12.1 percent, which “demonstrates the strength of the Primark operating model”. The company announced that the growth of the gross margin “is mainly due to cheap exchange rates, increases in efficiency among suppliers and effective management of the discounts”. Further cost controls and the temporal staggering of one -time posts also equalized wage inflation and increased investments in certain initiatives.

Effects of US tariffs expected, outlook remains unchanged

With regard to the future, the Chief Executive Officer (CEO) from Abf, George Weston said that the group was confronted with “an operational environment characterized by considerable uncertainties”, but was “continued to position” and that the “strong” balance sheet enables continuous investments in order to achieve long -term, sustainable growth. Therefore, the outlook of AFF for the financial year remains unchanged-with the exception of the sugar business-“the absorption of the effects of a US customs in the second half of 2025 continues to be taken into account based on what we know today”.

Primark is currently aiming for a low -in -one sales growth for the overall year, which is borne by the branch expansion in Europe and the USA, which, according to the company, is expected to contribute four percent to the total sales growth of Primark. Weaker sales in Great Britain and Ireland, where business activities are expected to remain difficult in the second half of the year, this revenue growth should compensate for.

The retailer continues to forecast an adjusted operational profit margin for 2025 that corresponds to the level of the previous year. This reflects an improvement in the gross margin and cost management. However, the adjusted operational margin for the year is expected to be lower than in the first half of the year, in which one -off posts have had a positive impact on the results.