The British mixed group Associated British Foods (AFF), which includes the Primark retail chain, published preliminary forecasts for the second half of the 2024/25 financial year on Wednesday, which ends on September 13th.
Because the outlook was cautious, the shares in London recorded a strong drop in the price. According to the Wall Street Journal, the course immediately fell by up to twelve percent to £ 1,966 – and thus up to the lowest level in five months. The reason for this was the analysts believed that weaker than expected development of the retail division Primark.
The parent company therefore expects a small currency -adjusted sales increase of around one percent for Primark. According to the company, this growth is due to the strong development in Great Britain and the USA. However, the weaker trade conditions in continental Europe have a dampening effect. This reserved forecast in conjunction with a decline in sales on a comparable area seems to have insecure: inside.
In a statement, CEO George Weston emphasized that despite a difficult environment, which is characterized by consumption and geopolitical uncertainty, the company developed well. He noted that Primark, the group’s retail division, had greater demand in the UK and strong sales growth in the United States. The Group’s grocery stores at the same time fulfilled expectations.
On a comparable basis, Primark’s sales will probably decrease by about two percent throughout the second half of the year. In Spain and Portugal, the proceeds are expected to increase by about two percent. Not least thanks to the newly opened branches, sales have developed better than the weak overall market in Spain, according to a message. In France and Italy, on the other hand, the proceeds are expected to decrease by four percent due to a weaker consumption field.
For Central and Eastern Europe, the company expects a sales increase of nine percent due to the latest branch openings, while Northern Europe is expected to have a decline by two percent. In the United States, sales are likely to increase by 23 percent in the second half of the year. This was due to the attractive price-performance ratio of the company and the opening of four new branches, said ABF.
Primark has recently expanded and optimized its branch portfolio and opened 15 new shops worldwide, including the first store in the US state of Tennessee. The company also prepares the opening of its first franchise branches in the Middle East: An opening in Kuwait is planned for October, two branches in Dubai are to follow in early 2026.
This article was used with digital tools translated.
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