The British conglomerate Associated British Foods plc (ABF) published an interim report on Thursday’s business development in the 16 weeks to January 3, 2026. Based on the available figures, the group continues to expect that the Primark retail chain will achieve a sales increase in the low single-digit percentage range in the first half of the year.
Primark experiences regional differences
In the current reporting period, developments at Primark were characterized by significant regional differences. In the UK, the retailer outperformed the weak clothing market and increased its market share with a three percent increase in sales. Like-for-like growth there was around 1.7 percent. The company attributed the increase to strategic investments in the range, price adjustments and the expansion of digital initiatives such as Click & Collect.
However, the growth in Great Britain was offset by a like-for-like sales decline of 5.7 percent in continental Europe. The company continues to expect fragile consumer confidence there. In addition, the “recovery measures based on the British model” in the region are “only slowly beginning to take effect”.
Volatility and margin pressure
Primark also faced challenges as it expanded in the US. Volatile retail conditions have impacted both consumer sentiment and footfall, the retailer said. While the global store expansion program, including a significant franchise opening in Kuwait, contributed a total of four percent to the increase in sales, overall growth for the period fell short of previous expectations, the company said.
In order to reduce inventories in this weak environment, significantly higher discounts were granted, it said in a statement. This measure put Primark’s profitability under pressure.
If current sales trends continue, the group expects Primark’s operating profit margin adjusted for special items to remain at around ten percent in the current financial year. The company emphasized that it continues to focus on a wide range of new initiatives to strengthen sales development and profitability in the second half of the year.
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